What occurs when the Track Intercompany Elimination option is enabled in the application?

When the Track Intercompany Elimination option is enabled in the application, the system processes total elimination values for intercompany transactions. This capability is essential in financial consolidations, as it accurately reflects the results by removing transactions between related entities within the organization. This ensures that the consolidated statements do not overstate revenues and expenses stemming from internal transactions, providing a clearer picture of the overall financial health of the organization.

The tracking of elimination values is crucial for accurate reporting and helps in maintaining compliance with various accounting standards. By processing these elimination values by Data Source, the application effectively categorizes and manages intercompany transactions, ensuring the integrity of the consolidated results.

This functionality does not automatically involve automated translations, restrict data inclusion, or add elimination members to the consolidation dimension, making the focus on tracking intercompany elimination values the most relevant and accurate choice regarding the effects of enabling this option.