how is it possible that a transaction interco whose date is 01/31/2023 is eliminated by the system in April? knowing that we close month by month and elimination entries are created each time. I did the test on another account and normally the elimination impacts the same period as that of the transaction

what happened in Jan? you said your IC AR and AP were always 0.00. Apparently not. if NS cannot find IC pair it books the variance into CTA Elim. That’s why I asked you what your balance was on CTA elim. It should be no more than, oh, $1K or between $0 and $1K. Anything else - you have issues.

yes indeed they are at 0 until the end of April but by analyzing April, I opened elimination JE and in detail I realize that transactions dating from January were only eliminated in April..

if transactions have open status (say, invoices are issued but not paid i.e. closed) they will continue eliminating every period until they are closed. Elimination journals get reversed systematically, so they keep re-eliminating open transactions. the plug is CTA-Elim.

Hello Karina ok but there is something that I don't understand about my client, his fiscal calendar is configured from June to May. The intercompany balance issue is still in May 2022 and May 2023 (every time in May ). I don't understand why the problem only occurs in this month ( may ) when I consult my consolidated balance sheet

I am confused with your discoveries honestly. First you say everything is perfect, then it is January, then April, now May. Obviously something is not working properly. Do you have ONE IC AR and ONE IC AP or there are multiple paired accounts between two subs?

no, there is only one AP account and one AR account. The problem is only located in the months of May 2022 and 2023 (I have just realized that entries from January or others are eliminated in other periods because they have open status so it s normal like you said )

so what do you see in May?

in May the IC accounts always have a balance. For example if I do a date filter month by month, they are always zero except for May. To have a balance at 0 ,I use as of June 2023 so that the balance is at 0 . If I do as of May 2023 the balance is not 0 .

yes, each individual IC account, i.e. IC AR account and IC AP account should have balances even at consolidated level, but when you net them they should be 0.