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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

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andy doghart
homecorp
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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!

------------------------------
andy doghart
homecorp
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Can this work if companies are different exchange rates and need to be consolidated into USD?

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Deb Peters
Director of Finance, HR & IT
Midwest Rubber Service & Supply
Plymouth MN
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Original Message:
Sent: Apr 06, 2021 11:11 AM
From: David Wiser
Subject: Consolidations eliminations company

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.


------------------------------
David Wiser
Sr. Solution Consultant
Tigunia
BCUG|NAVUG Board of Advisors
BCUG|NAVUG Programming Committee
BCUG|NAVUG All-Star

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!

------------------------------
andy doghart
homecorp
------------------------------

Hi Deb,

Yes, absolutely.  I work/live in Canada and almost all Canadian companies deal in foreign currency.  Each NAV/BC company will have its own currency and the parent company will be USD (in your case).  When you consolidate, NAV/BC will ask you what the currency of the parent company is and you enter USD.  No matter which method you use (David's, Jay's or mine) they can all work with different currencies.  It will be a little more difficult to try to eliminate the FX variance though but totally doable.

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Jimmy Yu
Enterprise Architect
Step Energy Services Inc
AB
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Original Message:
Sent: Apr 08, 2021 09:36 AM
From: Deb Peters
Subject: Consolidations eliminations company

Can this work if companies are different exchange rates and need to be consolidated into USD?

------------------------------
Deb Peters
Director of Finance, HR & IT
Midwest Rubber Service & Supply
Plymouth MN

Original Message:
Sent: Apr 06, 2021 11:11 AM
From: David Wiser
Subject: Consolidations eliminations company

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.


------------------------------
David Wiser
Sr. Solution Consultant
Tigunia
BCUG|NAVUG Board of Advisors
BCUG|NAVUG Programming Committee
BCUG|NAVUG All-Star

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!

------------------------------
andy doghart
homecorp
------------------------------

Hello Andy,

Adding to David's response, the way i have handled Consolidations & Eliminations is to have a Dimension called Eliminations with Dimension Values '0' = Non-Eliminating & '1' = Elimination.
I then add the relevant value to the respective GL Codes.
This then makes it easy enough to be able to pick up what is eliminated and what is not.

Hope this helps.

Regards,

Jay

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Jay Hari
0421504199
Hamlyn Terrace NS
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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!

------------------------------
andy doghart
homecorp
------------------------------

What I've seen/done at my last 4 companies is to create a Business Unit in the Consolidated/combined/parent company called E-xxxx.  The xxx indicates the actual business unit.  In David's example, this would be E-CompanyA or E-CompanyB.  Enter the elimination journal entry in the Consolidated company using the Business Unit Code E-CompanyA and E-CompanyB.

However, in saying this, I've personally preferred David's method of creating a completely separate company but have never been successful in convincing the company I work for to follow through with this method.

------------------------------
Jimmy Yu
Enterprise Architect
Step Energy Services Inc
AB
------------------------------

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!

------------------------------
andy doghart
homecorp
------------------------------