Elimination of Investments using automatic journals

You can eliminate the investments registered in the investments register using the automatic journal E100 for parent companies, E105 for subsidiaries, E110 for associated companies and E115 for joint venture companies. Use E106 if you do not need to differ between different consolidation types. All five bookings use automatic journal type 1.

Control Table E100

In the parent company, you eliminate registered accounts in the control table E100 (for example, shares in subsidiary) against an offset account, while you eliminate equity in the subsidiary (E105, E106, E110 or E115) against the same offset account.

Control Tables E105, E106, E110 and E115

The reason to separate the control tables for subsidiaries, associated companies and joint venture companies is to always get eliminations on the correct accounts, also when a company has several owners using different consolidation methods. You always use the detail equity accounts in the investments register, and in the control tables, you specify where the eliminations should be booked.

In the control tables, you must specify both detail and main accounts as To Accounts, if you have non integrated accounts.

The Effect of Balance Control

When you have chosen to work with balance control in the investment register, this means that you must enter a complete acquisition analysis. In E105, E110 and E115, you specify the equity and surplus value accounts used in the investments register as From Accounts.

When you have chosen to work without balance control in the investment register, the shares in the subsidiaries and any surplus values are all that is registered. You can enter these as From Accounts in the control table. You may define the To Account as the account for consolidated reserves (common configuration in, for example, Belgium). The amount in the parent company's shares in the subsidiary is thus eliminated in the subsidiary's equity. In this case it is suitable to use E106, as all company types are treated the same way, provided the investments register is used.