Elimination removes transactions and balances between companies when your Group's consolidated accounts are prepared. This ensures that the consolidated results reflect the Group's position with external parties rather than amounts charged or owed between companies within the Group.
1) Open the Elimination Tab
Go to Intercompany Control.
Select Elimination.
Review the list of existing elimination records.
Click New Elimination to create a new one.
You can also start an elimination from the Overview or from a related reconciliation record.
2) Select the Companies and Accounts
Choose the Group and the companies involved.
Select the account on each side of the elimination:
First company: Choose the company and the account whose balance or transactions should be eliminated.
Second company: Choose the counterparty company and the corresponding account.
Where an elimination applies to a specific customer or vendor rather than the account as a whole, select the relevant contact details on the appropriate side.
3) Configure the Elimination
Complete the remaining details, including:
The Group the elimination belongs to.
The period from which it should apply.
A narration describing the purpose of the elimination.
Whether the corresponding journal entries should be generated automatically.
Whether foreign exchange gains or losses should also be calculated and posted automatically, where applicable.
Review the selected accounts and companies carefully before saving.
4) Set Tracking Categories or Classes
You can optionally apply a tracking category or class to either side of the elimination.
The available tracking options depend on the connected accounting system.
For Xero, select from the available tracking categories and their options.
For QuickBooks Online, select the relevant class.
If tracking is enabled for a side, choose the required options before saving. Each side can use a different tracking selection.
5) Save the Elimination
Review the information and save the setup.
The elimination is then available in the Elimination tab for review and management.
Where automatic journal generation is enabled, the corresponding entries are generated according to the configured settings.
6) Create an Elimination from an Existing Reconciliation
You can also start from an existing reconciliation.
Open Intercompany Reconciliation.
Find the relevant company pair.
Use the elimination link beside the reconciliation record.
If a matching elimination already exists, GATHER.nexus opens it. Otherwise, the setup form opens with the relevant companies, accounts, contacts, and tracking information prefilled.
Review the details and complete any remaining fields before saving.
7) Understand How Elimination Affects Consolidated Results
Elimination can apply to two types of transactions:
Balance Sheet: Removes reciprocal amounts owed between companies, such as receivables and payables.
Profit & Loss: Removes corresponding internal income and expenses.
The relevant records should reflect the actual accounts, contacts, and tracking selections used by the transactions you want to eliminate.
Important Note
Elimination access depends on your GATHER.nexus subscription and available Group Financial Reporting functionality. If the option is unavailable, check your access permissions or subscription with your administrator.
Need help? Visit gather.nexus, click the chat icon in the bottom-right corner, or email [email protected] for assistance.