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Automated Accounting, D365 Eliminations

#D365 #D365FO #Accounting #Setup #Consolidations #Eliminations #Net

Processing Eliminations for Consolidated Trial Balance in D365 is rather straight forward.

The concept is that if you have transactions with the various companies that you own, those transactions need to be eliminated so that their balance is zero.

Today we will demonstrate an example where we have moved $1,000,000 USD of Prepaid Insurance from Contoso company USSI to USMF. We will have consolidated in GLMF and want to automatically Eliminate the related Intercompany Receivable and Intercompany Payable.

In this example GLMF is setup as both an Elimination and a Consolidation company,

(Organization administration > Organizations > Legal entities)

An alternative setup, which I actually prefer, is to create a separate Legal Entity for just Eliminations. The reason for this is that the Eliminations are then itemized on the trial balance of the consolidation company.

Process overview

1. First, we will consolidate without any Elimination Rules

2. Second, we will create an Elimination rule, and post the Elimination journal

3. Third, we will rerun the consolidation without any Elimination Rules.

1. Our Consolidated Trial Balance looks like this.

2.1 Elimination Rule Setup

In our elimination company we will create a rule to eliminate our intercompany receivable and payable.

Setup your new rule and lines as exhibited

Consolidations > Setup > Elimination Rule

2.2 Elimination Rule Posting

In our elimination company we will process the rule using a proposal and then post.

Consolidations > Elimination journal > New

Consolidations > Elimination journal > Lines

Then we choose the proposal parameters as exhibited and click OK for the proposal to automatically populate our journal lines.

Consolidations > Elimination journal > Lines > Proposals > Elimination proposal

2.3 Elimination journal, Post

We are satisfied that our elimination lines look good, so we go ahead and post the Elimination Journal.

3. Run the Consolidation again

Since we have now posted our elimination journal using the elimination rule. We will rerun the consolidation (without any Elimination rules).

Here is our consolidated Trial Balance.

The Elimination entries appear (highlighted TAN).

The new consolidated Intercompany Receivable and Intercompany balances are now, as desired zero (highlighted GREEN)

We have successfully automated processing an Elimination Journal and now have a proper Consolidated Trial balance in our consolidation Legal Entity.

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