SECTIONSAutomated Eliminations Examples
These examples aim to help you understand how the Automated Eliminations process works by showing examples of source transactions and resulting elimination transactions.
Example 1: Intercompany Revenue and Expenses across a Parent Company and Two Subsidiaries.
In this example, we will run an automated elimination across a parent company and two subsidiaries.
Source
The source companies for this elimination are a parent company and two subsidiary companies.
No source GLA or dimension filters are applied.
| Selected Companies | Parent Company, Subsidiary A, Subsidiary B |
Distribution
All Elimination Transaction Line items created by the Automated Eliminations process will be created in the Eliminations Company.
A Transaction Line Item for any outstanding balance will be posted to the Elimination GLA.
| Destination Company | Eliminations Company |
| Destination GLA | Elimination GLA |
| Destination Dimension 1 - 4 |
Source Transactions
Below are the TLIs for all of the source companies in the org that use Intercompany Elimination GLAs and are not yet eliminated.
There is a Debit Balance of $100 for the TLIs.
| Company | GLA | Dual Value | Balance | DR/CR | |
|---|---|---|---|---|---|
| Debit | Credit | ||||
| Parent Company | Mgmt Ree Rev | 700 | 700 | CR | |
| Subsidiary A | Mgmt Fee Exp | 700 | 0 | DR | |
| Parent Company | Mgmt Ree Rev | 300 | 300 | CR | |
| Subsidiary B | Mgmt Fee Exp | 400 | 100 | DR | |
| Parent Company | I/C Interest Income | 234.56 | 134.56 | CR | |
| Subsidiary A | I/C Interest Exp | 234.56 | 100 | DR | |
Elimination Transaction Line Items
Below are the Elimination Transaction Line Items generated by the Automated Elimination process.
All Elimination TLIs are posted to the Elimination Company.
All Elimination TLIs created in order to eliminate a GLA balance are posted to the same GLA as the source transactions.
The Elimination TLI that is created to eliminate the outstanding balance is posted to the Elimination GLA.
| Elimination Transaction Line Items | Elimination | ||||
|---|---|---|---|---|---|
| Company | GLA | Dual Value | Balance | DR/CR | |
|
|
|
Debit | Credit |
|
|
| Elimination Company | Mgmt Ree Rev | 1000 | 1000 | CR | |
| Elimination Company | I/C Interest Income | 234.56 | 1234.56 | CR | |
| Elimination Company | Mgmt Fee Exp | 1100 | 134.56 | DR | |
| Elimination Company | I/C Interest Exp GLA | 234.56 | 100 | DR | |
| Elimination Company | Elimination GLA | 100 | 100 | CR | |
Example 2: Intercompany Revenue and Expenses across a Parent Company and Two Subsidiaries.
In this example, we will run an automated elimination across a parent company and two subsidiaries.
Source
The source companies for this elimination are a parent company and two subsidiary companies.
A Source GLA filter and a Source Dimension filter are applied.
| Selected Companies | Parent, Subsidiary A, Subsidiary B |
| Source GLA Filter | Mgmt Fee Rev, Mgmt Fee Exp |
| Source Dimension 1 Filter | Chicago |
| Source Dimension 2 Filter | n/a |
Distribution
All Elimination Transaction Line items created by the Automated Eliminations process will be created in the Eliminations Company.
A Transaction Line Item for any outstanding balance will be posted to the Elimination GLA.
| Destination Company | Eliminations Company |
| Destination GLA | Elimination GLA |
| Destination Dimension 1 - 4 |
Run Time Criteria
The Automated Elimination Process will retrieve source transactions dated between 1/1/2021 and 1/31/2021.
Elimination Transactions will be posted as of 1/31/2021.
| Source Date From | 1/1/2021 |
| Source Date To | 1/31/2021 |
| Elimination Transaction Date | 1/31/2021 |
Source Transactions
Below are the TLIs for all of the source companies in the org that are using Intercompany Elimination GLAs and are not yet eliminated.
Only the TLIs that match the source and run time criteria are selected for the automated elimination process.
There is a debit balance of $30 for the source TLIs that meet the selection criteria.
| All TLIs of all entities in the org using Intercompany Elimination GLAs and not yet eliminated | Criteria Matching | Elimination | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Company | GLA | DIM1 | DIM2 | DR/CR | Dual Value | Transaction Date | Source Company | Run Time Criteria | GLA filter | DIM1 Filter | DIM2 Filter | Value | Balance |
| Parent Company | Mgmt Fee Rev GLA | Chicago | Marketing | CR | -700 | ######## | x | x | x | x | x | -700 | -700 |
| Subsidiary A | Mgmt Fee Exp GLA | Chicago | DR | 700 | ######## | x | x | x | x | x | 700 | 0 | |
| Parent Company | Mgmt Fee Rev GLA | Chicago | HR | CR | -500 | ######## | x | x | x | x | x | -500 | -500 |
| Subsidiary A | Mgmt Fee Exp GLA | Chicago | DR | 500 | ######## | x | x | x | x | x | 500 | 0 | |
| Parent Company | Mgmt Fee Rev GLA | LA | Marketing | CR | -200 | ######## | x | x | x | x | 0 | ||
| Subsidiary A | Mgmt Fee Exp GLA | LA | DR | 200 | ######## | x | x | x | x | 0 | |||
| Parent Company | Mgmt Fee Rev GLA | Chicago | Marketing | CR | -300 | ######## | x | x | x | x | x | -300 | -300 |
| Subsidiary B | Mgmt Fee Exp GLA | Chicago | DR | 330 | ######## | x | x | x | x | x | 330 | 30 | |
| Parent Company | Mgmt Fee Rev GLA | Chicago | Marketing | CR | -250 | ######## | x | x | x | x | x | -250 | -220 |
| Subsidiary B | Mgmt Fee Exp GLA | Chicago | DR | 250 | ######## | x | x | x | x | x | 250 | 30 | |
| Subsidiary C | Mgmt Fee Rev GLA | Chicago | Marketing | CR | -700 | ######## | x | x | x | x | 30 | ||
| Subsidiary D | Mgmt Fee Exp GLA | Chicago | DR | 700 | ######## | x | x | x | x | 30 | |||
| Parent Company | I/C Interest Income GLA | Chicago | CR | -234.56 | ######## | x | x | x | x | 30 | |||
| Subsidiary A | I/C Interest Exp GLA | Chicago | DR | 234.56 | ######## | x | x | x | x | 30 | |||
| Parent Company | Mgmt Fee Rev GLA | Chicago | Marketing | CR | -700 | ######## | x | x | x | x | 30 | ||
| Subsidiary A | Mgmt Fee Exp GLA | Chicago | DR | 700 | ######## | x | x | x | x | 30 | |||
Elimination Transaction Line Items
Below are the Elimination Transaction Line Items generated by the Automated Elimination process.
All Elimination TLIs are posted to the Elimination Company.
All Elimination TLIs created in order to eliminate a GLA balance are posted to the same GLA as the source transactions.
The Elimination TLI created to eliminate the outstanding balance is posted to the Elimination GLA.
| Elimination Transaction Line Items | Elimination | ||||||
|---|---|---|---|---|---|---|---|
| Company | GLA |
DIM1 |
DIM2 |
Dual Value | Balance | DR/CR | |
|
|
|
Debit | Credit | ||||
| Elimination Company | Mgmt Fee Rev | Chicago | Marketing | 1250 | 1250 | CR | |
| Elimination Company | Mgmt Fee Rev | Chicago | HR | 500 | 1750 | CR | |
| Elimination Company | Mgmt Fee Exp | Chicago | 1780 | 30 | DR | ||
| Elimination Company | Elimination GLA | 30 | 0 | CR | |||