Equity, Income Statement, and Inventory Accounts
You can set up intercompany accounts for this group of account types. Transactions posted to these accounts can be candidates for intercompany elimination. When set up as intercompany accounts, these accounts do not have to be used exclusively for intercompany transactions. Check the Eliminate Intercompany Transactions box for all income and expense accounts associated with items used in intercompany transactions. If you do not check this box, transactions with those items are not candidates for elimination.
Open balances for foreign currency transactions posted to these accounts are never revalued.
Inventory accounts, created by checking the Inventory box for an Other Current Asset account belong to this group. However, you should use advanced intercompany journal entries to record intercompany inventory transfers. For information about advanced intercompany journal entries, see Making Advanced Intercompany Journal Entries.
|
Account Type |
Eliminate Intercompany Transactions |
Restricted to Intercompany Transactions |
Reverse Elimination Automatically |
Revalue Foreign Currency Open Balances |
|---|---|---|---|---|
|
Equity |
Yes |
No |
No |
Never |
|
Income |
Yes |
No |
No |
Never |
|
Other Income |
Yes |
No |
No |
Never |
|
Expense |
Yes |
No |
No |
Never |
|
Other Expense |
Yes |
No |
No |
Never |
|
Cost of Goods Sold (COGS) |
Yes
Important:
For arm's length intercompany inventory transfer, do NOT mark the COGS account as Elimination. |
No |
No |
Never |
|
Other Current Asset -Inventory |
Yes |
No |
No |
Never |