You're almost there! Please answer a few more questions for access to the Applications content. Complete registration
Interested in joining? Complete your registration by providing Areas of Interest here. Register

Consolidation entry compounding monthly

edited Feb 6, 2019 9:52PM in General Ledger & Intercompany 4 comments

Summary

Why is our consolidation entry compounding monthly?

Content

We have only used intercompany/consolidation for about 4 months. 

The Balance Sheet looks great.

The P&L does not.

A consolidating entry is posting to the consolidating/clearing BU as:

DR Revenue

CR COGS

This entry is correct, to eliminate the Management Fee billed by one BU to a second BU.

What is not correct is that each month this entry compounds the amount.  For example, say the monthly Management Fee is $1,000, this is what the consolidation entry is looking like:

September - DR  Revenue  $1,000

                   CR  COGS     $1,000

October -     DR Revenue   $2,000

Howdy, Stranger!

Log In

To view full details, sign in.

Register

Don't have an account? Click here to get started!