Eliminations

Elimination Sets are comprised of due to and due from accounts that make up an intercompany transaction. Elimination Sets are processed individually or together as part of the Elimination Process. The Elimination Process calculates and posts Elimination Entries at Eliminating Companies within your legal entity hierarchy to ensure the proper aggregation of financial information at consolidated reporting levels. For example, a transaction that involves the sale of an item manufactured by a subsidiary to another subsidiary should be eliminated when reporting consolidated results.

When Eliminations are processed, all Elimination Entries are posted to the Elimination company. Elimination companies are defined during Segment Hierarchy creation. During this process you have the option of defining companies as Elimination Companies. These companies will determine points within the hierarchy where Elimination Entries should be recorded. Consider the example of a regional hierarchy where you have an Americas division, EMEA division and APAC division that all rollup to a Corporate company member. If there are intercompany transactions between two American companies, they will be eliminated at the Americas Elimination company. If there are intercompany transactions that occur between an EMEA and America company, then those intercompany transactions will not be eliminated until the Corporate Elimination.

When there are multiple Elimination companies with a hierarchy, the system decides which Elimination company to use based on Intercompany Segment and the Company.

1. Create an Elimination company in your chart of accounts as you would any other company.

2. Navigate to the Hierarchy Management screen (Maintenance > Hierarchy > Hierarchy Management).

3. Move the new Elimination company to the same level as the companies that you want to eliminate between.

4. Once the Elimination company is in it's correct location within the hierarchy, set it as an Elimination company by changing the Elimination selection from “No” to “Yes”.

   

5. Click OK and then Save.

When you set up an elimination company in Hierarchy Management and select Yes for Elimination as shown below, there will be an option in Data Load Rules to tell the application to obtain a value for the elimination company from the file (file is just one format you can use to load data and there are several others) that contains the data you are loading to Planful.

This option is available on the Define Overall Rule Settings page in Data Load Rules and is shown below. Select Yes for Include in Data File for the Elim Attribute to obtain the value from the data you are loading to Planful. This Parameter is available for Segment Hierarchy and Alternate Hierarchy data loads.