In the product
Consolidation
Consolidate across Tally companies, SAP company codes, Oracle ledgers and QuickBooks entities, with multi-currency translation.
Intercompany elimination
Removing transactions and balances between group companies, so the group does not report sales to itself as revenue.
If one subsidiary sells to another, both sides recorded something real in their own books. At group level neither happened: nothing left the group. The elimination reverses both sides.
It goes wrong when the two sides disagree — different amounts, different periods, different exchange rates — and somebody has to decide which is right before the group numbers mean anything.
Also written: intercompany eliminations, elimination entry.
Related terms: Consolidation, Trial balance, Financial close.