Manage Elimination Entities

Elimination entities are used in multi-entity workspaces to record and consolidate intercompany eliminations. When consolidated financial statements are prepared, transactions between entities within the same group (such as intercompany loans, sales, or cost recharges) must be removed to avoid double-counting. An elimination entity holds the offsetting entries that remove these intercompany balances from the consolidated result.

WALKTHROUGH

Intro guide on how to use elimination entities

Creating an Elimination Entity

A new elimination entity is created by selecting the Create button from the Manage Elimination Entities panel. The following details are required:

Basics

• Entity name – A descriptive name for the elimination entity.
• Entity code – A short, unique code used to identify the entity. Codes must be unique across all entities in the workspace.
• Rolls into group – The parent group in the Entity hierarchy that this elimination entity belongs to. This determines where the entity appears in consolidated roll-ups. This field can only be set when first creating the entity; afterwards, the parent group can be changed via Manage Hierarchy.
• Base currency – The currency used for elimination entries posted to this entity.

Note:

To move an existing elimination entity to a different group, use Manage Hierarchy.

Elimination Rules

Elimination rules automate the logic for recording intercompany eliminations. Each rule associates a source entity with one or more accounts. When an elimination is processed, xpna uses these rules to identify the accounts that need to be eliminated for the nominated source entity.

Rules are optional. If no rules are defined, eliminations can still be entered manually against the elimination entity.

Adding a Rule

A new rule is added by clicking the Add rule button. Each rule requires:

• Source entity – The entity whose intercompany balances are to be eliminated.
• Accounts – One or more accounts that hold the intercompany balances to be eliminated for the selected source entity.

A rule must have both a source entity and at least one account before it can be saved. Rules can be edited or deleted at any time.

Balancing Options

The auto-balance feature allows xpna to automatically calculate and post the balancing entry for an elimination entity, ensuring that the entity remains in balance after elimination entries are recorded.

When Auto-balance is enabled, a balance account is selected to receive the automatically calculated balancing difference. Only leaf-level accounts are available for selection.

When auto-balance is disabled, balancing entries must be managed manually.