Intercompany Account Naming Conventions | BrizoConsol Documentation

What this article covers: Recommended naming conventions for intercompany accounts in BrizoConsol — how to structure account codes so that auto elimination rules are easy to configure and maintain.

Auto elimination rules in BrizoConsol match account pairs across entities to generate elimination journals automatically. The quality and maintainability of your auto elimination setup depends on how consistently your intercompany accounts are named and coded.

1. The Core Principle: Mirrored Account Pairs

Every intercompany transaction has two sides — a receivable (asset) in one entity and a payable (liability) in the counterparty. For auto eliminations to work, these two accounts need to be identifiable as a pair. The most reliable approach is mirrored account codes: the same base code for both sides, with a suffix distinguishing the receivable from the payable.

💡 Example:
• Intercompany Trade Receivable: IC-TRADE-REC
• Intercompany Trade Payable: IC-TRADE-PAY

Both share the IC-TRADE base, making them immediately identifiable as a pair and keeping auto elimination rule configuration simple.

2. Recommended Prefix Convention

Use a consistent prefix for all intercompany accounts to distinguish them from operational accounts in your chart of accounts:

Convention Notes

Prefix: IC- All intercompany accounts start with IC-. Simple and widely recognised.

Prefix: ICO- Intercompany Offset prefix — useful when IC- conflicts with other account codes already in use.

Numeric range Reserve a dedicated account code range for all intercompany accounts (e.g. all codes in the 18xxxx range). Useful when your COA is numerically structured.

Choose one convention and apply it consistently across all entities. Mixed conventions require more complex rule configurations and increase the risk of missed eliminations.

3. Naming by Transaction Type

Within the prefix, include a segment that identifies the transaction type. This makes it easy to group related accounts and configure module-specific elimination rules:

Transaction Type Suggested Account Code Pair

Trade Receivables / Payables IC-TRADE-REC / IC-TRADE-PAY

Intercompany Loans IC-LOAN-REC / IC-LOAN-PAY

Interest Income / Expense IC-INT-INC / IC-INT-EXP

Management Charges IC-MGMT-INC / IC-MGMT-EXP

Dividends IC-DIV-INC / IC-DIV-PAY

Fixed Asset Transfers IC-FA-GAIN / IC-FA-LOSS

4. Consistency Across Entities

The same intercompany account code must be used in every entity in the group. If Entity A records its trade receivable as IC-TRADE-REC and Entity B records the corresponding payable as IC-CREDITORS-IC, the auto elimination rule cannot match the pair.

🛈 Recommended: Define intercompany account codes once in the Common Chart of Accounts and map them to every entity. This guarantees consistency and means any change to an intercompany account is applied group-wide automatically.

5. Applying Conventions to Auto Elimination Rules

Once accounts follow a consistent convention, auto elimination rules are straightforward to configure. Each rule specifies the debit account in the eliminating entity, the credit account in the counterparty, and the entities involved. With mirrored codes, each rule is a simple one-to-one match — without consistent conventions, rules require manual account-by-account mapping that becomes difficult to maintain as the group grows.