Budgets and Forecasts · Track 4 · Tutorial 1 of 2

Eliminate intercompany in the plan

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If one company budgets a charge to another, the group budget must not count it twice. The elimination rules that clear the actuals run on the budget and forecast too, with nothing more to set up.

You will needElimination rules working for the actuals, as in the Automate with rules track. Budget & Forecast Input allowing entity level. Administrator or Journals & Eliminations Admin access for one-off entries.

By the endYour Group’s 2027 budget with the management charge between Demo Sales Company and Demo Service Company eliminated.

1Know what runs on the plan

Elimination rules	Every active rule runs on the Budget and Forecast figures in its accounts, as well as the Actual ones: same method, tolerance and effective dates. Foreign amounts use that scenario’s rates.
When	Each time a company’s budget or forecast is saved, typed or uploaded.
Review	An entry a rule holds for a decision goes to Elimination Review, under the scenario it belongs to.
One-off entries	A GL entry can be posted to Budget or Forecast, as to Actual.

Rules read each company’s own figures, so a plan entered only at consolidated level has nothing for them to eliminate.

2Budget both sides

Each company budgets its side of the charge on the accounts the rule uses, for the same months: Demo Sales Company the management fee income, Demo Service Company the expense. A side left out leaves nothing to match, or a difference.

3See the plan’s eliminations

Select Your Group, and open Intercompany → Management Charges.
Set Scenario to Budget, and move to Jan-2027 with the period arrows.

Entries posted by a rule are marked as such. They are rebuilt each time the plan changes, so they can’t be edited here: change the budget, or the rule.

Management Charges with Scenario Budget and Period Jan-2027: an entry posted by the Management fee rule between Demo Sales Company and Demo Service Company, Balanced, Rebuilt 7 Nov — Scenario Budget (1), the period (2), the rule that posted it (3), and Rebuilt, with no edit or delete (4).

Check

Open Budget → Profit & Loss for Your Group, and choose 2027. The management fee income and expense no longer add to the group’s revenue and costs.

4Post a one-off plan elimination

On the same page, with Scenario on Budget, click + Add entry.
Enter the entry with GL entry, as in Post a GL elimination entry.

Documents can only be picked for Actual, so a plan entry is always a GL entry.

5If something goes wrong

What you see	What to do
Nothing is eliminated in the budget	Check both companies budgeted the rule’s accounts for the month, at entity level, and that the month is inside the rule’s effective dates.
The rule’s entry waits in Elimination Review	The two sides differ by more than the rule allows, or the rule asks for a decision. Open Intercompany → Elimination Review with Scenario on Budget.
A foreign company’s side is eliminated at an odd amount	The Budget scenario has no rate, or the wrong one, for its currency and month. See Set rates for budgets and forecasts.

Want more detail? See the documentation

Auto Eliminations Elimination Entries Entering Budget & Forecast Data

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