Eliminate Intercompany Transactions

Note: This step is required only if you have posted intercompany transactions.

Navigate to the Consolidation Period End Closing page and click the Eliminate Intercompany Transactions button.

Intercompany Elimination Processing

GoldFinch will automatically generate General Journal entries to reverse intercompany GL transactions and convert them into the parent company's base currency during the consolidation process.

All elimination entries will be posted to the Elimination GL Ledger.

Bank Account Handling

Elimination entries should never be posted directly to Bank Account GL accounts. When an intercompany transaction involves a bank account, you must manually replace the bank account GL account with an Undeposited Funds GL Account in the elimination journal.

This approach supports both of the following scenarios:

1. Funds are paid from the source company and received by the destination company within the same accounting period.
2. Funds are paid from the source company but have not yet been received by the destination company as of the consolidation date (cash in transit).

Using the Undeposited Funds account allows GoldFinch to eliminate the intercompany activity without creating artificial bank transactions in the consolidated books.

Currency Translation Differences

Any balancing differences resulting from currency conversion and translation will be posted automatically to the Cumulative Translation Adjustment (CTA) account specified in Company Setup.

The CTA account captures exchange-rate fluctuations between the source and destination entities and ensures that all elimination journals remain balanced in the parent company's reporting currency.

Article Eliminate-Intercompany-Transactions  ·  Last updated November 14, 2025 · GoldFinch ERP Help Center