Use this screen to create elimination entries for the consolidating (receiving) company. Elimination entries are journal entries that eliminate duplicate revenue, expenses, receivables, and payables. These duplications occur as the result of intercompany work where the sending and receiving companies both recognize the same effort. Both entities correctly recognize the revenue, expenses, receivables, and payables on their respective company financial statements but, at the consolidated level, these amounts are duplicates and must be eliminated. Elimination journal entries are calculated on a year-to-date basis and are reversing. This means that elimination entries created in the final period of the fiscal year are reversed in the first period of the next fiscal year.
Do not post the reversal amounts to income statement accounts (in case the elimination entry contains these types of accounts). You should either edit the reversal elimination entry or enter a separate journal entry to remove these income statement amounts.
The receiving company should execute this process once the consolidation entry has been posted. Elimination accounts must be already set up in the receiving company and be assigned to the financial statement lines that require elimination.
Enter, or use the drop-down box to select, the fiscal year for which you want this elimination journal entry created.
Enter, or use the drop-down box to select, the period for which you want this elimination journal entry created.
Enter, or use the drop-down box to select, the subperiod for which you want this elimination journal entry created. The ending date of this subperiod will display to the right.
Select this checkbox to enter a suspense account that will be used if the elimination entry is out of balance when it is created. The suspense account will serve as a balancing account if the elimination entry is out of balance by organization. In theory, the elimination entry should balance without this account, but since Costpoint allows you to eliminate any line on the primary financial statements, this ensures the entry is created without interruption. Later, you can research any amounts posted to this account and transfer them to another account with a separate journal entry. If you do not select this checkbox and the entry is out of balance, the system will display a message to this effect and will not create a journal entry. The default for this checkbox is unchecked.
Enter, or use Lookup to select, an account that will be used as a suspense account if the elimination entry is out of balance by organization. This field will be enabled only if you have selected the Use Intercompany Suspense Account checkbox.
Select this button on the toolbar to create the elimination journal entry.
Data entered in this screen is stored in the following tables:
JE_HDR
JE_TRN
JE_RVRS