Consolidation and elimination are two different processes but they are connected. Consolidation is gathering transactions from several company accounts into a single entity to print consolidated financial reports. Elimination is excluding inter-company transactions between subsidiaries and it is performed prior to the consolidation process; the elimination process could be executed separately or within the consolidation process.
Microsoft Dynamics 365 for Finance and Operations has four consolidation approaches; the company's CFO and controller should decide which approach will be followed and of course this will be driven by business needs.
The following diagram illustrates the different consolidation ...
