Manage multi-entity eliminations and journal entries in Intuit Enterprise Suite

Find out how to manage all of your companies’ financial data from a single place using Intuit Enterprise Suite.

Intuit Enterprise Suite includes a multi-entity feature you can use to manage and consolidate your financial data for all of your related companies.  You can automatically eliminate intercompany accounts, create intercompany journal entries, and run consolidated multi-entity reports to get a clear picture of your overall financial health.

Step 1: Eliminate intercompany accounts automatically

When preparing consolidated financial statements for your companies, you may need to remove some accounts to avoid double-counting.

Typically, these types of accounts are eliminated in the consolidation process:

• Intercompany revenue and expense accounts
• Intercompany receivables and payables
• Intercompany investments and equity accounts

Consult with your accountant or refer to relevant accounting standards for guidance on which accounts should be eliminated in your specific case.

To eliminate intercompany accounts:

1. Sign into your Intuit Enterprise Suite parent account. 
2. Go to Advanced accounting, and select Multi-entity.
3. Select Select intercompany accounts.
4. For each company, choose the accounts that are used solely for intercompany transactions or balances. 
5. Once you've selected your accounts, select Save. QuickBooks will automatically eliminate the full balances of these accounts from your consolidated reports.

Step 2: Create a multi-entity journal entry

Intercompany journal entries must be created from the main parent company. 

1. Select + New, then Journal entry.
2. Toggle the Intercompany transaction option to enable it. This adds the Company column to the journal entry form.
3. On the first line, select a company from the Company field, then an account from the Account field.
4. Enter the amount in the correct column when you debit or credit the account. The debit or credit will be recorded to the selected company and account.
5. Repeat steps 3 and 4 for all debits and credits related to the first company.
6. On the next line, from the Company field, select the other company you’re moving the funds to or from, and add the necessary details.
7. Select Save and new or Save and close. 

The transaction will be recorded to all companies selected in the form.
Note: You can include as many companies as needed in an intercompany transaction. But, we recommend recording intercompany transactions between two companies at a time to simplify record keeping, auditing, and other financial management processes.

Step 3: Create consolidated multi-entity reports

You can run consolidated multi-entity reports in Intuit Enterprise Suite, or use Spreadsheet Sync.

Enter manual elimination adjustments

In some cases, you may need to manually remove specific amounts whenever you have an account that isn’t used exclusively for intercompany transactions. 

1. In your downloaded report from Spreadsheet Sync, adjust the amounts in both the Eliminations and the Consolidated statement columns. 
2. Save your spreadsheet.  These adjustments won’t be posted to Intuit Enterprise Suite.