Eleminations

Elimination Types

The following elimination types are available in group consolidation:

  • Manual elimination
    • at group account level
    • at company chart of accounts level
  • Automatic elimination
    • at group account level
    • at company chart of accounts level
  • Minority Interests
  • Acquisitions and Excess Values
  • Disposition

Manual Elimination

Manual elimination is direct registration of eliminations where an elimination is carried out with a fixed amount on a fixed account.

Manual eliminations have the following options for carryforward to a new period:

  • Do not carry over to a new period
  • Carry over to new period with reset amounts
  • Carry over to a new period

Manual elimination at company level involves selecting the company and then one of the company’s accounts on each posting line. The elimination will appear as part of the company’s balance figures in the trial balance structure. The posting line will follow the company’s account. If the company’s account is linked to another group account, the posting will follow the company’s account and affect the new group account.

Manual Elimination at Group Account Level

This elimination type is equivalent to manual elimination in Finale Consolidation. Upon import from Finale Consolidation, manual eliminations will be assigned this elimination type.

The elimination is carried out directly in the group structure and will not be displayed as part of the balance figures for the individual group companies in the trial balance function.

Automatic Elimination

Automatic eliminations read the balance on the chosen account/company and nullify this by creating an elimination against a selected contra account. If the balance changes on the chosen account/company, the elimination automatically changes. The balance figures used for the elimination are the imported balance before eliminations.

Automatic eliminations have the following options for carryforward to a new period:

  • Do not carry over to a new period
  • Carry over to new period

Please note the following: An automatic elimination uses imported balance figures before all eliminations without considering other eliminations against the same account or group account. If automatic eliminations are set to use balance figures for an account, and another elimination is set up using balance figures from the same account, the same balance can be eliminated multiple times.

Automatic Elimination at Company Level

This elimination type involves choosing the company and then one of the company’s accounts on each posting line. The elimination will appear as part of the company’s balance figures in the trial balance structure. The posting line will follow the company’s account. If the company’s account is linked to another group account, the posting will follow the company’s account and affect the new group account.

The balance figure used is the company’s balance before eliminations on the specified account.

Automatic Elimination at Group Account Level

This elimination type is equivalent to automatic elimination in Finale Consolidation. Upon import from Finale Consolidation, automatic eliminations will be assigned this elimination type.

The elimination is carried out directly within the group structure and will not be displayed as part of the balance figures for the individual group companies in the trial balance function.

By selecting a company on the elimination line, the elimination will use the account balance of this company. The amount will consist of the balance on all the company’s accounts linked to the chosen group account.

By not selecting a company on the elimination line, the elimination will use the account balance for all accounts linked to this group account for all companies within the group. The amount will consist of the balance on all company accounts linked to the selected group account.

Elimination of minority interests

Elimination of minority interests is done automatically based on the company accounts of the subsidiary by doing the following:

  • State that there are minority interests in the subsidiary
  • On the Minority interests tab, the minority’s share in percentage of annual profit and equity is recorded.

Based on this registration, an elimination is created, which is also shown on the Minority interests tab.

Elimination of acquisitions and surplus values

This elimination is based on a registration of:

  • Additional value in amount
  • Undepreciated surplus value at the beginning of the year
  • Depreciation of surplus value in percentage or annual amount
  • Tax percentage
  • Minority’s share of surplus value

Based on this information, an elimination is created. Please note that the counterpart entry to the elimination is equity. This means that, for example, when you create an elimination of the share value in a subsidiary with surplus value, you eliminate the share value as it will be when the surplus value is fully depreciated, i.e. against equity, so that the elimination of shares and acquisition transactions must be seen in context.

Elimination of changes in dispositions and allocations

When registering eliminations, a profit effect may occur that must be taken into account in order to make the allocation appropriate the entire annual profit and to make the balance sheet balance. An example of an elimination that can create such a difference is the elimination of intragroup profit if this is eliminated credit fixed assets and debit gain on disposal.

This elimination creates an elimination with these two accounts involved:

  • Account with reference account 2050 Other retained earnings
  • Account with reference account 8960 To/from other retained earnings
Last modified March 5, 2025