Large organisation representing multiple companies usually record transactions between these companies. However, in general, these transations should not be included on consolidated profit and loss or balance sheet statements as they do not represent actual revenue or expenses.
What can be done ?
BudgetLink provides the ability to eliminate inter-company transactions in a number of creative ways:
- by recording inter-company transactions (or eliminations) into a separate data file and including this data file as part of the consolidation process;
- by recording inter-company transactions against a specific job or category and excluding this job or category from your reports.
How does it work ?
Depending on the approach chosen, eliminating inter-company transactions is as simple as nominating the eliminations company, category or job on your reports and excluding those transactions.
What costs are involved ?
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