Consolidating intercompany inventory
Elimination journals can be generated either during the consolidation process or by using an elimination journal proposal.
Before you set up elimination rules, you should become familiar with the following terms: Your legal entity, legal entity A, sells widgets to another legal entity in your organization, legal entity B.
A truly comprehensive solution, Financial Management in Microsoft Dynamics AX gives you critical local market functionality.Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer.The new guidance does not apply to intra-entity transfers of inventory.Sometimes inventory changes hands between companies. The consolidated balance sheet that is completed at the end of the year provides businesses with a full snapshot of the various intercompany inventory transactions that they have made.In some cases, inventory may carry over from one year to the next and must be accounted for as well.