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Group Consolidation - Automate intercompany elimination on unsold stocks


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  • Do Gooder (Partner)
  • 11 replies

Through elimination rules, IFS can automatically eliminate AP & AR. Is there an automatic way to eliminate the profit from unsold stock? Any improvements introduced in Cloud?

Example: Subsidiary A sells a stock worth of $100 @ $120 (keeping a margin of $20) to subsidiary B. The selling price of the stock in subsidiary B is $150. Company B sells 75% of the stock to 3rd party (150*.75=112.5). How can we eliminate the profit of unsold stock in IFS?

 

Best answer by Ieva Rituma

There is currently no automated process for this. The way to get around this is to create a report which lists out any serial/lot tracked stock items still in stock at the period end, to show stock which has been purchased from an internal company. Then use the data around stock values to generate a journal for eliminating intercompany profit relating to unsold stock.

 

This does require serial/lot batch tracking to be enabled in order to trace stock back to its origins.

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Ieva Rituma
Superhero (Employee)
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  • Superhero (Employee)
  • 428 replies
  • Answer
  • June 26, 2023

There is currently no automated process for this. The way to get around this is to create a report which lists out any serial/lot tracked stock items still in stock at the period end, to show stock which has been purchased from an internal company. Then use the data around stock values to generate a journal for eliminating intercompany profit relating to unsold stock.

 

This does require serial/lot batch tracking to be enabled in order to trace stock back to its origins.


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  • Author
  • Do Gooder (Partner)
  • 11 replies
  • June 26, 2023

Thank you very much leva for the swift, clear response.


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