Equity elimination rule in fccs to eliminate only part of retain earning prior

Summary:

The retain earning prior account is not fully eliminated although it is in the elimination rull

Content (please ensure you mask any confidential information):

We are implementing FCCS for a client starting the dec 23 period.

We start to consolidate in dec 2023 and we noticed that although we set up the equity elimination rule to eliminate the retain earning prior account, it is not fully eliminated. From my accounting understanding, this account should be eliminated exactly as share capital for example.

Our consultant told me it is the regular behavior of the system and the retained earning prior account will never be fully eliminated, I just don't understand why.