Eliminations (same currency)

Overview

Once the model is set up, it’s time to handle eliminations. Almost all company groups have intercompany transactions that must be eliminated at the consolidated level. This section will walk you through the simple steps to eliminate intercompany transactions in Francis. This example assumes that the companies involved share the same base currency, so there will be no fluctuations due to exchange rate differences.

Basics

Identify intercompany transactions

Users typically allocate intercompany transactions to specific general ledger accounts or dimension values. Both methods work in Francis, allowing you to separate these transactions into individual rows.

Eliminate intercompany transactions

You want to retain intercompany transactions on a stand-alone basis for each entity but eliminate them on a consolidated basis to avoid inflating numbers.

Use a separate instance named “Eliminations” to carry out all eliminations in one place. Simply create elimination entries using formulas by adding a minus sign at the beginning of each transaction.