Example: Consolidation eliminations with the affiliate entity dimension

You can use the affiliate entity dimension to eliminate activity among entities during consolidation.

Using the affiliate entity dimension in the following example, you can define elimination rules that automatically create elimination entries on the reporting book.

The following consolidation example shows a tiered consolidation that uses Advanced Ownership Consolidation.

A 3-tiered ownership structure with entity E100 at the top; entities E101, E102, and E200 at the first subsidiary level; entities E201, E202, and E300 at the second subsidiary level; and entity E301 at the third subsidiary level.

Intacct eliminates the following:

  • Activity between entities E200 and E300 on the E200 reporting book.
  • The remaining activity, such as that between entities E101 and E300, on the E100 reporting book at the top level.

Eliminations in multi-level ownership structures

Using the affiliate entity dimension, you can eliminate activity for directly and indirectly related entities, or entities in the same or other reporting groups within an ownership structure. A reporting group constitutes a tier in an ownership structure that rolls up to a common parent.

  • Direct relationships: Create elimination entries on the reporting book for all entities in the reporting group.
  • Indirect relationships: Create elimination entries on the reporting book for the first common parent entity.

Eliminate activity for directly and indirectly related entities

In the same example ownership structure, Intacct eliminates only the activity from affiliate entities in the reporting group and lower levels, rolling up to the first common parent.

A 3-tiered ownership structure with entity E100 at the top; entities E101, E102, and E200 at the first subsidiary level; entities E201, E202, and E300 at the second subsidiary level; and entity E301 at the third subsidiary level.

Consolidation works by consolidating and eliminating from the lowest level up.

What eliminations look like in this example

The Consolidate with options window lists the entities in the ownership structure by level, including the elimination entity for each reporting group. The ownership percentage is shown for each entity.

The Consolidate with options window lists the entities in the ownership structure by level, including the elimination entity for each reporting group. The ownership percentage is shown for each entity.

Reporting book for each entity reporting group

When eliminating activity using the affiliate entity dimension in the example ownership structure, we get the following reporting books from the bottom up:

E300 has a direct relationship to entities E200, E201, E202, and E301. E300 has an indirect relationship to entities E100, E101, and E102. When consolidating the E300 reporting group, Intacct eliminates activity between E300, the directly affiliated entities in the reporting group, and activity from the indirectly related upper tiers to the B300 reporting book.

Entities E300 and E301 are being consolidated for the entity E300 reporting group.

Structure of the reporting book for entity E300 reporting group
Entity Level Reporting book Ownership percent
Entity E300 (parent) 3 B300 100%
Entity E301 3 B300 100%
Elimination entity for E300 3 B300 100%

E200 has a direct relationship to entities E100, E101, E201, E202, and E300. E200 has an indirect relationship to entity E301. When consolidating the E200 reporting group, Intacct eliminates activity between E200, the affiliate entities in the reporting group, and activity from the indirectly affiliated lower tier entity E301 to the B200 book.

Entities E201, E202, E300, and E301 are being consolidated for the entity E200 reporting group.

Structure of the reporting book for entity E200 reporting group
Entity Level Reporting book Ownership percent
Entity E200 (parent) 2 B200 100%
Entity E201 2 B200 100%
Entity E202 2 B200 80%
Entity E300 (subsidiary) 2 B300 100%
Elimination entity for E200 2 B300 100%

E101 is a management entity that has a direct relationship to E100, E102, and E200. E101 has an indirect relationship to all the other entities in the ownership structure, such as E301. When consolidating the E100 reporting group, Intacct eliminates activity between E100 and E101 to the B100 book.

All entities are being consolidated for the entity E100 reporting group.

Structure of the reporting book for entity E200 reporting group
Entity Level Reporting book Ownership percent
Entity E100 (parent) 1 B100 100%
Management company entity E101 1 B100 100%
Entity E102 1 B100 85%
Entity E200 1 B100 100%
Elimination Entity E100 1 B100 none
Entity E200 (parent) 2 B200 100%
Entity E201 2 B200 100%
Entity E202 2 B200 80%
Entity E300 2 B200 100%
Elimination entity for E200 2 B300 100%
Entity E300 (parent) 3 B300 none
Entity E301 3 B300 100%
Elimination entity for E300 3 B300 100%

Subset eliminations

For more information about subset eliminations with the affiliate entity dimension, see Example 2: Use the affiliate entity dimension in a subset consolidation book.

Regional availability

The affiliate entity dimension is generally available in the following regions:

  • Australia
  • Canada
  • South Africa
  • United Kingdom
  • United States