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 Intercompany → Elimination Rules 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.
💡 AI-assisted rule setup: Click AI Suggestions on the Auto Eliminations page to open BrizoElim. The AI analyses your subsidiaries' charts of accounts and suggests elimination rules for matching account pairs — review the suggestions, assign a method to each, and add the ones you want in one step.
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 Intercompany TypeSelect the intercompany category this rule posts under — this tags the elimination entries so they can be filtered and reported by type. Leave at the default if you only have one category.
3
Choose the elimination MethodSelect one of the four methods — see Section 3 for full descriptions. Methods 1, 2, and 3 post entries automatically. Method 4 sends a proposal to Elimination Review for manual approval before posting.
4
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.
5
Select the To Organisation and To AccountThe entity and account on the corresponding side — e.g. the entity recording the intercompany payable.
6
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.
7
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.
8
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.
Intercompany Type
Tags the type of elimination this rule posts under — for example, which intercompany category it should be classified as. Options are configured at the organisation level. Defaults to the standard elimination category.
Timing difference (Method 2 only)
Only visible for Method 2 when the residual treatment is set to Timing. Review before posting (default) — sends the period to Elimination Review instead of posting automatically. Park on an account — posts the full elimination and parks the unrecorded difference on the treatment account.
Only eliminate when an invoice or bill names
Optional. Enter customer/supplier names as written on documents, separated by commas. When set, the rule only posts for periods where an invoice or bill from either side names at least one of them — otherwise the period goes to Elimination Review. Leave empty to eliminate every period.
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.
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.
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
Use the lowest amount in both Organisations
Posts automatically ✓
BrizoConsol compares the balances in both the From and To organisation accounts and eliminates using the lower of the two amounts. No FX gain/loss entry is generated — any residual difference is absorbed rather than posted to an FX account.
Use when: Both entities record their side of the intercompany transaction but you want to avoid FX gain/loss entries — for example, where intercompany balances are expected to match and any minor difference should be silently absorbed rather than surfaced as an FX variance.
Use when: Both entities record their side of the intercompany transaction but you want to avoid FX gain/loss entries — for example, where intercompany balances are expected to match and any minor difference should be silently absorbed rather than surfaced as an FX variance.
METHOD 4
Review and approve before posting
Does NOT post automatically
BrizoConsol compares the amounts in both organisations and prepares a proposed elimination entry, but does not post it automatically. The proposal is sent to Elimination Review, where it can be inspected, adjusted, and approved before posting.
Use when: The elimination requires manual review or sign-off before it is applied — for example, where the entry needs to be confirmed by an approver before flowing into the consolidated reports.
Use when: The elimination requires manual review or sign-off before it is applied — for example, where the entry needs to be confirmed by an approver before flowing into the consolidated reports.
⚠️ Method 4 requires approval: If you select Method 4, BrizoConsol prepares a proposed elimination entry but does not post it automatically. The proposal appears in Elimination Review where it must be approved before it is posted to the consolidation.
🛈 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
Methods 1, 2 & 3: Yes. Method 4: No (sent to Elimination Review for approval)
Always — you control each entry
Flexibility
Rule-based — less flexible per period
Full control over each individual entry