Saved Search that Lists Source Transactions of Intercompany Elimination Journal Entries

For some intercompany accounts particularly Balance Sheet accounts other than Accounts Receivable and Accounts Payable, there is no Source link available on intercompany elimination journal entries created.

 

Here are steps on how to configure a search that can help identify the source transactions of an intercompany elimination journal entry for these accounts:

 

1. Using an Administrator role, navigate to Lists > Search > Saved Searches > New.

 

2. On the list, click Transactions link.

 

3. Set the following configurations under:

 

- Criteria tab

     Account = select the intercompany account

     To Subsidiary = is not -None-

    

- Results tab

     Sort By = Account

     Then By = Date

     Then By = Subsidiary

 

- Results tab > Columns sub-tab

     Account

     Date

     Period

     Tax Period

     Type

     Number

     Name

     Subsidiary

     Subsidiary Fields > Currency; Enter a Custom Label = Base Currency of Subsidiary

     Amount (Foreign Currency); Enter a Custom Label = Transaction Amount

     Exchange Rate

     Currency

     Formula (Currency); Enter Formula = {fxamount}*{exchangerate}; Enter a Custom Label = Foreign Currency Amount

 

- Change the Search Title and click Save & Run

 

2. The result will list out all the intercompany transactions that posted to the intercompany account.

 

3. Export the result in a spreadsheet file and modify the result to identify which of the transactions are for elimination. The lines for elimination have "Yes" on the Elimination column of the source journal entry. The field is not available on the search so users need to open each transaction to identify.

 

4. After identifying those that are for elimination and those that are not, remove the lines that are not for elimination and group the transactions per subsidiary.

 

     a. Sum up the amounts under "Transaction Amount" column that have the same Transaction Currency. If the transaction currency is not the same with the base currency of the subsidiary, sum the amounts under "Foreign Currency Amount" column. If a particular subsidiary has both transactions with same and different currencies, add the total of both.

 

     b. Multiply the total amount by the consolidated exchange rate. The product is the same amount on the intercompany elimination journal.

 

     c. If there are any transactions that use the same Transaction Currency of the elimination subsidiary, add it to the product to get the amount generated from the intercompany elimination journal.

 

5. To get the applicable Consolidated Exchange Rate, navigate to Reports > Accounting > Consolidated Exchange Rate and set the following:

- From Subsidiary = the same subsidiary under the Subsidiary column of the search for which the total is converted to the currency of the elimination subsidiary

- To Subsidiary = parent subsidiary of the elimination subsidiary where the elimination journal is posted