Elimination companies are mainly used when consolidating multiple companies which make transactions between themselves. For example, company A sells products to company B. While it is proper to show the sales and COGS on company A's books when looking at company A individually, the sale would need to be eliminated when looking at the consolidated statements since the combined companies did not really have sales. The elimination company removes the impact of intercompany transactions. The screenshot below is an example of what the elimination company would post for a specific transaction. BC/NAV generally suggests making the elimination entries directly in the consolidation company, but many accountants like having the separate company in the system.

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David Wiser
Sr. Solution Consultant
Tigunia
BCUG|NAVUG Board of Advisors
BCUG|NAVUG Programming Committee
BCUG|NAVUG All-Star
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Original Message:
Sent: Apr 06, 2021 01:24 AM
From: andy doghart
Subject: Consolidations eliminations company
Hello, I'm looking into setting up consolidations between multiple companies we have in the system. Searching online I have seen mentioned to set up an eliminations company. Does anyone have more information or how this would work?
The only material I can find on eliminations is doing them manually so not sure how a stand alone eliminations company would work
Thanks!
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andy doghart
homecorp
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