What this article covers: How to set up Auto Elimination rules in BrizoConsol — selecting organisations and accounts, choosing an elimination method, configuring FX and tolerance settings, and how rules are applied during consolidation. For one-off or ad-hoc entries, see Elimination Entries.

Auto Eliminations let you define rules that BrizoConsol applies automatically during consolidation — removing intercompany balances between entities without manual intervention each period. Define a rule once and it runs every period. This is best suited to recurring intercompany transactions where the same accounts are used consistently across entities.

1. Accessing Auto Eliminations

Go to Adjustments → Auto Elimination from the left navigation. Existing rules are listed with their Order, Description, and Last Update. Click Add an Auto Elimination Rule to create a new one, or click the edit icon on an existing rule to modify it.

2. Adding an Elimination Rule

1
Enter a Description and select an Accounting StandardGive the rule a clear name — e.g. Sub1 Receivable vs Sub2 Payable. Select the applicable accounting standard (e.g. Local GAAP) so the rule only applies when that standard view is active.
2
Choose the elimination MethodSelect one of the three methods — see Section 3 for full descriptions. Method 1 and 2 post entries automatically. Method 3 validates only and does not post automatically.
3
Select the From Organisation and From AccountThe entity and account on the originating side of the intercompany transaction — e.g. the entity recording the intercompany receivable.
4
Select the To Organisation and To AccountThe entity and account on the corresponding side — e.g. the entity recording the intercompany payable.
5
Set the Foreign Exchange Gain/Loss AccountAny difference between the debit and credit sides caused by exchange rates is automatically posted to this account. Auto currency will use the currency of the From Organisation.
6
Set the Tolerance %The acceptable difference threshold between the two sides — expressed as a percentage. The default is 1.0000%. If the difference between the From and To amounts is within tolerance, the rule proceeds. If it exceeds tolerance, the rule flags the discrepancy.
7
Click ConfirmThe rule is saved and will be applied automatically during every subsequent consolidation. You do not need to re-enter it each period.

Rule Form — Field Reference

Field Description
Description A label for this rule — shown in the rules list
Accounting Standard The standard this rule applies to — only active when that standard view is selected in reports
Method How the elimination amount is determined — see Section 3
From Organisation / From Account The originating entity and the account to eliminate from
To Organisation / To Account The corresponding entity and the account to eliminate to
Foreign exchange gain/loss Account The account that receives any FX difference between the debit and credit amounts. Auto currency uses the From Organisation's currency.
Tolerance % Acceptable mismatch threshold between From and To amounts. Default: 1.0000%. Differences within tolerance are posted to the FX account; differences exceeding tolerance are flagged.

3. Elimination Methods

Choose the method that matches how the intercompany transaction is recorded across your entities:

METHOD 1 Use the amount in the From Organisation only Posts automatically ✓
The elimination entry is posted based solely on the balance in the From Organisation's account. The To Organisation's account is not checked.

Use when: Only one side of the intercompany transaction is recorded consistently — for example, a parent charges management fees to subsidiaries and only the parent records the income. The subsidiary may not have a matching payable account.
METHOD 2 Use the amount in both Organisations Posts automatically ✓
The system matches and eliminates the balances from both the From and To organisation accounts. Any difference between the two amounts within the Tolerance % is posted to the FX Gain/Loss account.

Use when: Both entities record their side of the intercompany transaction — for example, an intercompany loan where one entity records a receivable and the other records a payable.
METHOD 3 Validate the amount in both Organisations Does NOT post automatically
BrizoConsol checks whether the amounts in both organisations match (within the Tolerance %) but does not post any elimination entry automatically. If the amounts are within tolerance, the rule passes. If they differ beyond tolerance, the rule flags the discrepancy for your review.

Use when: You want to verify that both sides of an intercompany balance are in agreement before posting a manual elimination yourself — for example, when the elimination requires review or sign-off before it is applied.
⚠️ Method 3 does not post entries: If you select Method 3, BrizoConsol will validate and flag discrepancies but no journal entry is created. You must post the elimination manually via Elimination Entries after reviewing the validation result.
🛈 Before setting up rules: Auto Eliminations work best when the same account codes are used consistently across entities for intercompany transactions. If account structures differ significantly between entities, use Elimination Entries for those transactions instead.

4. Managing Rules

Action How to do it
Edit a rule Click the edit (pencil) icon on the rule row — the form reopens as Updating elimination rule. Modify any field and click Confirm to save.
Delete a rule Click the red delete icon to remove the rule. It will no longer run in future consolidations — historical periods are not affected.
Filter rules Use the filter bar at the top-right to search by description, accounting standard, or account
Rule order Rules are executed in the order shown in the list. The Order column shows each rule's sequence number.

5. Auto vs Manual Eliminations

Auto Eliminations Elimination Entries
Best for Recurring intercompany transactions One-off or ad-hoc entries
Setup Define once, applied every period automatically Entered individually each period
Requires Consistent account codes across entities No account structure requirement
Posts entries Method 1 & 2: Yes. Method 3: No (validates only) Always — you control each entry
Flexibility Rule-based — less flexible per period Full control over each individual entry