Outlining Intercompany Elimination Options

Now that you have matched and reconciled the intercompany transactions, you can move on to the integrated accounts payable and receivable eliminations.

There are two options in group reporting to perform intercompany eliminations. You can choose which one to use based on the following criteria:

1. Rule Based

   • Total difference only

   • Execute from the consolidation monitor

2. Integrated with Intercompany Matching and Reconciliation

   • Differences can be broken down into transaction, translation, and other

   • Execute from the consolidation monitor

   • Status is displayed in the Manage Reconciliation Close app

ABC Corporation decided to implement the integrated option because they need to separate transaction vs. currency differences. They also want to monitor the matching and elimination processes from the Manage Reconciliation Close app.