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Elimination income statement balances not to zero
Hi,
Running the period close checklist, all tasks are performed, including the calculation of the consolidated exchange rates and the elimination process.
In the income statement the total of the elimination subsidiary doesn't balance to zero.
The (simple) case:
Company A (base currency EUR) sells to Company B (base currency USD)
Journal is posted in USD
The elimination company doesn't balance to zero because the elimination amount of the Cost of Goods Sold is calculated based on the consolidated exchange rate in stead of the exchange rate.
From a controlling perspective this wasn't the result expected; there shouldn't be a result (profit) in the elimination company.
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