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Unconsolidated intercompany eliminations

How do I eliminate related but unconsolidated company bank transfers that are not loans?

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Best answer August 26, 2020

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Community Champion

Unconsolidated intercompany eliminations

Not sure how you have entered these to start but money movement between unrelated entities (Company A to/from Company B) are of the following types

1. loans

2. equity

3. sales

 

The rules for 2 above would entail equity out to an owner of Company A and equity in from an owner of Company B

 

Transfers, while simple and straightforward, should be reserved for bank accounts at same bank but owned only by the same company. Instead record as a check or deposit depending on which way the money flows so that you can affect the correct equity accounts

View solution in original post

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Highlighted
Community Champion

Unconsolidated intercompany eliminations

Not sure how you have entered these to start but money movement between unrelated entities (Company A to/from Company B) are of the following types

1. loans

2. equity

3. sales

 

The rules for 2 above would entail equity out to an owner of Company A and equity in from an owner of Company B

 

Transfers, while simple and straightforward, should be reserved for bank accounts at same bank but owned only by the same company. Instead record as a check or deposit depending on which way the money flows so that you can affect the correct equity accounts

View solution in original post

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