---
title: "Elimination of Intercompany Debt"
description: "With the app for elimination of intercompany debt, the receivables and liabilities among the consolidation units of a group are eliminated for consolidated financial statements."
source_url: https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-2/configuring-consolidation-apps/elimination-intercompany-debt
language: en
last_updated: 2023-08-16
---
# Creating and Configuring the Elimination of Intercompany Debt

## Overview

With the app for **elimination of intercompany debt**, the receivables and liabilities among the consolidation units of a group are eliminated for consolidated financial statements.

The app eliminates the intercompany transactions for all consolidation units of a consolidation area across all selected accounts based on the given partner information. Any differences from the consolidation are recognized in the second consolidation unit.

In addition, it is possible to generate a **report on differences** that may arise when executing the app. The report shows the differences with the corresponding difference accounts.

## Configuring the Elimination of Intercompany Debt

To configure the app for **elimination of intercompany debt**, click the app in the structure view and click **Edit** in the displayed dialog.

Configure the steps as described below.

### Settings

In **Settings** step, specify the time and the relevant consolidation areas and/or units for consolidation:

Step 'Settings'

#### Create postings

Time of consolidation

**Per month**

The app eliminates the intercompany transactions in each month of the consolidation period and creates monthly consolidation postings.

**Accumulated at the end of the period**

The app eliminates the intercompany transactions accumulated in the last month of the consolidation period and creates a consolidation posting only in the last month of the consolidation period.

{% info-box %}
For each consolidation unit that is deconsolidated during the consolidation period, an accumulated consolidation posting is carried out in the last month of inclusion in the consolidation area.
{% /info-box %}

#### Consolidation area and/or unit

Consolidation groups and/or units of the selected group for which the consolidation is to be performed

**By default**, **all** consolidation areas and units within the group are included in the consolidation.

If you only want to include certain consolidation groups and units in the consolidation, activate the **Individual selection** check box and select one of the following options:

- **Individual**\
\
In the table, select individual consolidation areas and/or consolidation units to be considered in the consolidation.
- **Exclude**\
\
In the table, select the consolidation areas and/or consolidation units that are to be excluded from consolidation.

{% info-box %}
If you choose **Individual** or **Exclude,** the app will perform no eliminations for intercompany transactions of the excluded consolidation units.
{% /info-box %}

### Adjustment levels

In the **Adjustment levels** step, sepcify the adjustment levels for consolidation.

Step 'Adjustment levels'

#### Basis

Adjustment level group that contains all adjustment levels for **data imports** and **adjustment postings** to be considered in the consolidation.

Please ensure that the adjustment level for the [proportioning](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-2/data-transfer-and-proportioning.md) is included in this adjustment level group.

#### Target

Adjustment level for consolidation postings to be used for the postings.

### Elimination

In the **Elimination** step, specify the the required **Accounts** and the **Transaction type** for the elimination of intercompany debt.

‘Elimination’ step

#### Accounts or items with intercompany transactions

Accounts and/or items to be considered for the consolidation

#### Post difference

**Default values**

**Account** and **transaction type** that are to be used by default for postings of differences that arise during consolidation.

The account itself must **not contain** any intercompany transactions to be consolidated.

**Deviating values**

- **Advanced settings**\
\
If you want to define different accounts or transaction types for certain intercompany relationships, activate the option **Advanced settings**.\
\
After that, in the **Intercompany relationship** column, select the two related companies for which you want to define different values and configure a deviating **account** and/or a deviating **transaction type**.
- **Separate account for differences in the period of the deconsolidation**\
\
Activate this option to specify a separate **account** for posting differences in the period of the deconsolidation.

Advanced settings

### Report

In the **Reports** step, you can specify the consolidation area(s) and period for which a report on differences should be generated if any arise when executing the app.

The report shows the differences with the corresponding difference accounts and how the differences arose.

Report step

#### Generate report

Activate the option to create a **Report on the difference amounts** when executing the app.

#### Consolidation areas included

Consolidation areas for which the report should be generated

#### Reporting period

Period for the report

**Year to date (based on fiscal year of consolidation area** The report is created for the period starting from the beginning of the consolidation area's fiscal year and ending with the final period of the current consolidated financial statements.

**Consolidated financial statements**

The report is generated for the period of the current consolidated financial statements

{% info-box %}
The report is created in an executable folder named **Reports for _name of the consolidated financial statements element_** when executing the app and is linked in the detail view of the **Consolidated financial statements** workspace in the **Report** column.

Each created report can be exported in Excel format.

Linked reports in the consolidated financial statements overview
{% /info-box %}

{% idea-box %}
- As long as a step has not been fully configured and/or configuration errors exist, it is displayed with a red exclamation mark .
- Once a step is configured completely and without any errors, it is displayed with a green check mark .
- You can close the configuration dialog by clicking the arrow icon at the top left.
- To change the name of the app, select the app in the tree view and choose **Properties** from the context menu.
{% /idea-box %}

## Executing the Elimination of Intercompany Debt

You can execute the app for elimination of intercompany debt either **separately**, together with other apps in an **executable folder** or as part of **consolidated financial statements**.

How to proceed in each case is described under [Execute consolidation](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-2/executing-consolidation.md).

## Displaying and Deleting Created Elements

On the **Created elements** tab, the difference reports and postings that were created during the app execution are shown.

The table provides the following information:

- **Type** of the element
- **Path** under which the element was created When you click on the link, you are taken directly to the posting in the relevant [journal](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/imports-journals/journale.md) or to the report.
- Date of the **last execution** that created the element

Tab 'Created elements'

If necessary, you can **delete all elements**.

**Note**: Once all elements have been deleted, the state of the wizard is **Not executed** again.

## Displaying the App Properties

The **App properties** are displayed on the tab of the same name:

'Properties' tab

The following **App properties** are displayed:

- **Type** of the element
- Function of the **App**
- **Version** of the element.

**New available version**

As soon as a new version of the app is available that contains changes to the app configuration and/or the calculation logic of the app, the **Refresh** command is displayed, allowing you to update the app to the latest version.

Information about the changes to each version can be found in the **Release Notes**, which can be accessed via the link of the same name.

{% warning-box %}
We {% u %}strongly recommend{% /u %} to update all apps to the new version as soon as possible because it cannot be guaranteed how long an app with an obsolete version can be executed.
{% /warning-box %}