Intercompany Eliminations Guide | BrizoConsol Documentation

What this article covers: A step-by-step guide to running intercompany eliminations in BrizoConsol — from enabling modules and setting up rules through to reviewing eliminations in consolidated reports.

Intercompany eliminations remove the effect of transactions between entities within your consolidated group from the group financial statements. This guide walks through the recommended workflow for setting up and running eliminations in BrizoConsol.

Step 1 — Enable the Relevant Modules

Before any intercompany transactions can be entered, make sure the appropriate modules are enabled in Organisation Settings → Intercompany Rules. Enable only the modules that apply to your group's intercompany activity — disabled modules are hidden from the Intercompany menu to keep navigation focused.

💡 Tip: The Other Eliminations module is always active and covers any intercompany items that do not fit a specific category. For most groups, start with Trade Receivables / Payables and add other modules as needed.

Step 2 — Set Up Auto Elimination Rules

Auto eliminations work by matching intercompany account pairs across entities. For automatic eliminations to function correctly:

Map your intercompany accounts in the Common Chart of Accounts so that paired accounts share a consistent code convention (see Intercompany Account Naming Conventions).
Configure auto elimination rules in Intercompany → Auto Eliminations — each rule specifies the account pair to eliminate, the entities involved, and how the elimination is calculated.

Step 3 — Post Intercompany Transactions

Users in each entity post their intercompany transactions through the relevant Intercompany module. Each transaction records the amount, counterparty entity, and relevant accounts from both sides.

🛈 Note: Transactions must be posted consistently on both sides — the receivable in one entity should match the payable in the counterparty. Mismatches will appear in reconciliation views.

Step 4 — Review Auto Eliminations

Go to Intercompany → Auto Eliminations to review the automatically generated elimination entries. BrizoConsol matches account pairs across entities and generates the elimination journals. Review them to confirm they are complete and accurate.

If an expected elimination is missing, check that:

The relevant auto elimination rule is configured and active.
The account codes used in transactions match the codes specified in the rule.
Both sides of the intercompany transaction have been posted in their respective entities.

Step 5 — Post Manual Elimination Entries

For eliminations that cannot be automated — such as unrealised profit adjustments, complex dividend eliminations, or one-off intercompany items — post manual elimination entries in Intercompany → Elimination Entries. Manual entries give full control over the debit and credit accounts and amounts.

Step 6 — Verify in Consolidated Reports

After all eliminations are posted, verify the consolidated position by reviewing your financial reports with the elimination layer included. Intercompany balances should net to zero at the group level — any residual balance indicates a mismatch that needs investigation.

💡 Best Practice: Run the elimination review at month end before closing the period. Use the period lock feature to prevent further changes once eliminations are confirmed.