Accounting Tools Podcast - Eliminating Intercompany Transactions on the Books

Every unsettled intercompany receivable and payable on the books at the end of a reporting period has to be eliminated before you can create consolidated financial statements. The best approach is to operate the parent business and all of its subsidiaries on the same accounting database. Every entity in the overall business is automatically flagged by the accounting software, which then takes care of the eliminations for you.