Concept: Intercompany Accounts and Elimination Rules

You can tag accounts as intercompany accounts only for:

Instances with the Consolidation solution.
General ledger accounts.
Leaf-level accounts.
Accounts with
Periodic
or
Cumulative
for the
Type
setting.
Accounts with
Standard
for the
Data Entry Sheet Type
setting.

For the splits elimination method, you:

Can tag any general ledger debit and credit accounts as intercompany accounts. Example: Tag 1 intercompany credit account and 3 intercompany debit accounts for an elimination rule.
Can't tag cumulative by delta accounts because you can't add splits to these accounts.

For the attributes elimination method, you can tag a debit and a credit account pair for every possible trading partner pair.

Example: Companies A, B, C, and D are trading partners. You need to tag these 24 accounts for the attributes elimination method:

Credit A from B	Credit B from A	Credit C from A	Credit D from A
Credit A from C	Credit B from C	Credit C from B	Credit D from B
Credit A from D	Credit B from D	Credit C from D	Credit D from C
Debit A to B	Debit B to A	Debit C to A	Debit D to A
Debit A to C	Debit B to C	Debit C to B	Debit D to B
Debit A to D	Debit B to D	Debit C to D	Debit D to C

For the intercompany account pairs to work in elimination rules, you also need a difference account. Difference accounts store any differences between the credit and debit pairs. For elimination rules, the difference account must be a system account that you add to the elimination rule.

Example: The EU Payables to the US are $100 but US Receivables from the EU are $105. The elimination rule moves the difference to the system account.