Intercompany journals span different subsidiaries, by definition, and enable accountants to create journals to remove any double counting that may occur as a result of transactions between members of the group of companies. They usually involve a subsidiary called an elimination subsidiary, which is set up for the purpose of removing intercompany transactions. The elimination subsidiary is set up in the same way as a normal subsidiary, but with the elimination checkbox checked on the subsidiary record. Speak to your accountant about how he/she wants the elimination subsidiaries set up and at what position in the subsidiary hierarchy:
Intercompany journal entry between different ...
