This article explains how to set up account-level intercompany elimination in ScaleXP for both P&L and balance sheet accounts, and how to add or remove accounts from elimination.
There are two options to eliminate intercompany accounts in ScaleXP. The most common is to move them into intercompany financial categories at the consolidated entity — see How to consolidate intercompany accounts in ScaleXP.
This article covers the alternative option: keeping accounts in their existing P&L and/or balance sheet categories and identifying elimination accounts separately. For other group-level adjustments (not eliminations) such as goodwill, intercompany ownership, or fair-value adjustments, see How to add consolidation adjustments.
1. Set up eliminated accounts
Go to the consolidated entity, then navigate to Load Data (top bar) > Eliminated Accounts (left sidebar).
Select the specific revenue and/or balance sheet accounts you wish to eliminate.
Selected accounts will still show at the subsidiary in the usual place. At the consolidated company level, the accounts are eliminated.
2. Eliminating P&L accounts
In theory, the total eliminated accounts on the P&L should offset each other so the balance is zero. In reality, there is always a small balance due to foreign exchange movements.
Show this amount on the consolidated P&L by adding a row with the metric FX Consolidation Reserve Profit & Loss.
See How to add rows to an existing report for instructions.
3. Eliminating balance sheet accounts
Assets and liabilities tagged for elimination at the consolidated entity remain in place in the subsidiary company but are eliminated from the parent.
To reflect the FX impact of eliminated balance sheet accounts, add the metric FX Consolidated Reserve Balance Sheet as an account.
4. Remove an account from elimination
Go to the Eliminated accounts section on the Load Data page, find the account to be removed, and click the three dots at the far right. Select Remove.
