Intercompany elimination and consolidation forecast
Consolidation forecasts often require entries that do not appear in a single legal entity forecast: intercompany sales elimination, AR/AP elimination, loan elimination, dividend elimination, goodwill, NCI, and equity-method movement.
Can I forecast intercompany eliminations?
You can model elimination entries as journal-style adjustments, then review the resulting PL, BS, and CF movement. This is useful for planning scenarios, but it should not be treated as a full consolidation close process.
1) Match both sides before eliminating
Intercompany AR/AP, loans, notes, sales, COGS, and interest should be checked against both entities before elimination. A mismatch usually indicates timing, currency, or source-system differences.
2) Separate investment elimination from operating eliminations
Investment and capital elimination, goodwill, bargain purchase gain, and NCI are different from routine intercompany sales or loan eliminations. Keep those entries separate so reviewers can trace the logic.
3) Treat this as planning support
Consolidation policy, ownership percentage, acquisition date, currency translation, tax, and disclosure requirements need specialist review. Use this page for planning vocabulary and entry structure, not final consolidation advice.