Total_Company is the first common ancestor between US_Mine_1 and Plant_1.What makes this calculation interesting is that the transaction should NOT be eliminated at ancestors we arrive at the first common ancestor.Most of my clients create their Budgets and Forecasts in a “fully eliminated” manner.
The only unusual thing about this design is that many of the “Customers” are customers.
Intercompany transactions can occur across a variety of accounts within the Income Statement and Balance Sheet.
The simplest example is one subsidiary selling something to another subsidiary within the same company.
As it turns out, Martin was planning on sharing several elimination calculation methods in his presentation (some developed by him, and some developed by others). (hint, hint) Either way, you should check out his presentation – I will definitely be there.
With all of that said, here’s my approach to intercompany eliminations in an ASO plan type.