IC sales-cogs elimination
i have a case where the IC transactions are recorded with markup but the markup is posted in separate account to the cr of P&L in the selling co. The same is taken as separate Dr to P&L in the purchasing company. In the selling co sales and cogs reflect the cost and match always. in the purchaing co, the goods are taken to invenroy on receipt and stock is debited.
for elimination purposes, profit in selling co is matched with expense in purchasing company. so ICP accounts are created for these two to with a matching set.
say
A sells to B with cost 80 and profit 20
entity-account-ICP-data
A-Profit-B-20
B-expense-A-20
so A's value in B and B's value is A are matched based on common plug account and eliminated at common parent C.
for sales and cops elimination, the accounts need to be matched withn entity for consolidation at common parent C.how can this be achieved. These accounts are ICP flagged accounts.
A-Sales-B-80
A-COPS-B-80
can default elimination of HFM match values within same company and eliminate the balances?