Generate Automatic Journals for Intercompany Profits

You can use this function if you want to perform an automatic elimination of the calculated intercompany profit presented in the reconciliation report.

For more information, see Generate Automatic Journals for Intercompany Balances.

Eliminations are only performed based on control tables set as Active. The elimination takes place on the basis of the defined control tables. Automatic journals are posted on:

The selling company - where the operating result is affected with the period’s change of the intercompany profit reserve.

The buying company - where the internal inventory is adjusted with the closing balance of the intercompany profit reserve.

All amounts are posted in the group currency. If you want to create a group journal for intercompany profit elimination manually, you can create this journal using the Group/Data Entry/Group Journals menu option.

Tip: If you want to check which automatic journals have been created, you can print a journal report from the Group/Reports/Journals menu.