The elimination JE related to intercompany sales/purchases is: intercompany AP (debit) Intercompany AR (credit) Intercompany Sales (debit) COGS (not intercompany COGS) (credit) CTA (debit) - equal to intercompany COGS Intercompany COGS (credit) This looks incorrect (assuming the intercompany inventory is not yet sold to third parties). Is there an easy way to track the intercompany inventory sold to third-parties? Or at least to correct the elimination JE especially if there are a lot of intercompany sales/purchases?

Do you mean Cross subsidiary fulfillment?

That's a bug that will likely never be fixed. I fought with Support for weeks to get them to understand why it was a problem. I'd go one level up and just journal out the piece going to regular COGS into Interco COGS once the elims run.

We switched to Cross-Sub fulfill because the inter company transactions and inventory movements were just not working for the large volume of transactions we had.