Intercompany that eliminates itself.
Featured in
Flow
Benefits
Eliminated at source
Always tied out
No elimination entries
The Problem
Intercompany is a reason close runs late
Every transaction between your own entities has to be found, matched, and eliminated before the consolidated numbers mean anything, and that reconciliation is usually the last and worst stretch of close.
When one entity transacts with another, Flow eliminates it at the transaction level as it posts.
A bill from one of your entities to another nets out on both sides, not just in a manual journal entry.
Both sides come from one posting in one ledger, so there's nothing to reconcile between entities.
Consolidated reports stay clean continuously, with no end-of-period reversal to build.
FAQ's
Do the eliminations post automatically, or do we still book them?
Automatically, at the transaction level as each one posts, with a senior accountant on any judgment calls.
How is this different from your multi-entity consolidation?
Consolidation rolls the entities up; this is how the transactions between them net out, eliminated at the source rather than in a month-end entry.
What happens when the two sides don't match?
No answer in the doc. Suggested fill, consistent with the page: because both sides come from one posting in one ledger, they can't drift out of balance the way they do when two entities book separately, and when a transaction needs a judgment call a senior accountant resolves it before it posts.
Does Flow eliminate across invoices and payments, or only journal entries?
cross journals, invoices, and payments, so an intercompany bill nets out on both sides.
How do intercompany eliminations work across currencies?
FX is applied so cross-currency intercompany still nets to zero on consolidation.
