Elimination settings for the journal line, account, and name do not match. To check this line for intercompany elimination, you must check Eliminate Intercompany Transactions on the account record and enter a To Subsidiary on the name record, if used.

You need to use advanced intercompany journal entry ( Don’t use a standard journal entry ) The accounts that you use must be eliminated by checking the elimination box in list > accounting. In addition, you must enter the to subsidiary to indicate the subsidiary with which the transaction is taking place. Example: a US subsidiary sells to Canada, the AP account of the US subsidiary must indicate Canada in to subsidiary