Consolidation elimination finance

When one subsidiary sells to another in the same group, both record the operation: one as revenue, the other as expense/inventory. At the individual level it is fine; at the consolidated level it duplicates because the group has not sold to a third party. The elimination is the entry that cancels that effect: debit to intercompany revenue and credit to intercompany expense (or credit to inventory, if the goods are still in stock). More complex eliminations affect unrealized profits (margin on inventory not yet sold outside) and must reverse when that inventory is finally sold. Doing this in Excel is where groups break: cifraHQ Enterprise emits eliminations automatically from reconciled intercompany pairs, with full auditability.