Companies that use Domestic or Consolidation often create more entities, called elimination entities, to perform eliminations on consolidation books. These entities serve only to contain the amounts eliminated due to inter-entity transactions. You cannot access or switch to elimination entities.
If your company uses Global or Domestic Consolidations, you can designate an entity as an elimination entity. This designation is permanent, and cannot be changed later.
You need one elimination entity for each consolidation book currency. For example, if you have 3 consolidation books all with the same book currency, you only need 1 elimination entity.
For details on elimination entities, see:
Inter-entity transactions
Inter-entity transactions are tracked separately from regular receivable and payable transactions. An example of an inter-entity transaction is when one entity pays another entity for a service. For each entity you define, you can specify the payable and receivable accounts to be used for inter-entity transactions.
For details on enabling inter-entity transactions, see Map inter-entity accounts.