Sunday, June 30, 2019

Elimination Journal Entry created only eliminates the Intercompany Accounts Receivable against the CTA-E account and did not consider the Intercompany Accounts Payable.

An intercompany transaction affecting the intercompany accounts receivable and payable will normally eliminates with the following GL Impact:

Debit: Intercompany Payable------------xx

Credit: Intercompany Receivable-----------------xx

Dr/Cr: CTA-E--------------------------------------------xx

When the elimination journal entry has the following impact or vice versa, we just need to check the status of the intercompany bill or invoice. If the status is set to Paid-in-full, then only the open transaction will be eliminated as the intercompany payable or receivable has already been closed on the payment transaction.

Debit: Intercompany Payable------------xx

Credit: CTA-E------------------------------------------xx



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