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Auto Elimination - The 'Account Auto Elimination' Maintenance Function

Once you have defined a set of rules using the Auto Elimination setting in the Nominal Ledger as described here, it will be used by the 'Account Auto Elimination' Maintenance function to create a new record in the Simulation or Transaction register containing the necessary postings.

You can use the 'Account Auto Elimination' function from the Nominal Ledger and from the Consolidation module. To use it, ensure you are in one of these modules and open the 'Maintenance' list by selecting 'Maintenance' from the File menu. Double-click 'Account Auto Elimination' in the list. If you are in the Nominal Ledger, the following dialogue box appears:

Period
Paste Special    Reporting Periods setting, System module
The balances to be eliminated will be the net changes in the balances of Accounts 1 and 2 over the period entered here.

Trans Date
Paste Special    Choose date
Enter a date to be used as the Transaction Date in the Transaction or Simulation created by the function.

If the function will create a Transaction, you must enter a date here, otherwise the function will have no effect. If the function will create a Simulation and you do not enter a date, the resulting Simulation will not have a date. You will not be able to convert this Simulation into a Transaction until you enter a date.

Auto Elimination
Paste Special    Auto Elimination setting, Nominal Ledger
Enter the Code of a record in the Auto Elimination setting. This will determine whether the function will create a Simulation or a Transaction and will specify the Accounts whose balances are to be cancelled out and the Accounts that are to receive any differences.
Click the [Run] button in the Button Bar to run the function. When it has finished, you will be returned to the 'Maintenance' list window. The function will check the current Company only for the balances of Accounts 1 and 2 as specified in the Auto Elimination record. It will create a Simulation or Transaction in the current Company reversing those balances and posting any difference to the To Account, also as specified in the Auto Elimination record.

For example, the record in the Auto Elimination setting shown below will create a Simulation eliminating the balances from Accounts 191 and 485, with any difference being transferred to Account 530.

The Analytical Balance report (or the Nominal Ledger report if you want more detail) shows the balances that will be eliminated:

The 'Account Auto Elimination' function will create this Simulation:

When you are certain that the Simulation is correct, you can convert it into a Transaction using the 'Transactions' function on the Operations menu of the 'Simulations: Browse' window. In the example illustrated above, the cause of the difference should be traced and removed, and the 'Account Auto Elimination' function should be run again to create a new Simulation, which can then be converted to a Transaction.

If you run the 'Account Auto Elimination' function from the Consolidation module, the 'Specify Account Auto Elimination' window has an extra field, Tran. to Company:

If you leave this field empty, the function will behave in the same way as described above, working only in the current Company.

You can run the function from any Company in the database, and you should enter the Company Code of the Mother Company in this field. You should do this even if you are running the function in the Mother Company itself. The consequences will be as follows:

  1. The function will search in the specified Company (i.e. in the Mother Company, not in the current Company) for the Auto Elimination record specified in the field above.

  2. The function will create the elimination Simulation or Transaction in the Mother Company. The Accounts used in the Auto Elimination record must all exist in the Account register in the Mother Company.

  3. The function will check the Mother Company for the balances of Accounts 1 and 2 as specified in the Auto Elimination record, and it will also check all Companies listed in the Daughter Companies setting in the Mother Company. This is not a multi-level check, so if any Daughter Companies have their own Daughters, you should run the function at the Daughter Company level before doing so in the Mother Company.
For example, the record in the Auto Elimination setting shown at the beginning of this page will create a Simulation eliminating the balances from Accounts 191 and 485, with any difference being transferred to Account 530.

A single inter-company transaction is recorded as a sale in the first Daughter Company and as a purchase in the second:

Enter the Company Code of the Mother Company in the Tran. to Company field in the 'Specify Account Auto Elimination' window:

In the example illustration, the "M" in the title bar indicates that the function is being run from the Mother Company, but it is still necessary to enter the Company Code "M" in the Tran. to Company field. This means the function will look in all M's Daughter Companies for account balances to be eliminated. If the Tran. to Company field were left blank, the function would look in the Mother Company only.

The 'Account Auto Elimination' function will create this Simulation in the Mother Company:

As in the previous example, the cause of the difference should be traced and removed, and the 'Account Auto Elimination' function should be run again to create a new Simulation, which can then be converted to a Transaction.