Hello - I need help with an Elimination subsidiary question. We have 3 elimination subsidiaries and I have been asked which of our subsidiaries uses which elimination subsidiary. Is it as simple as the subsidiary hierarchy (see column c on the attached) or is it transactional based. I looked at Suite answers but could not find a straightforward answer. Two of our subsidiaries use CAD but all the rest and the eliminations are USD. Thank you!

your table is correct

Thank you !

If the intercompany transaction is between sub1 and sub4, won't it use Z Elimination?

eventually, but first it will use ZZZ Elim, then ZZ Elim, then Z elim

How does that work? There will be 3 elimination journals?

yes (or more actually, per sub)

My company is trying to budget for the eliminations. If I use the chart will that be fairly accurate for them to use?

I m not sure how you budget for eliminations outside of clearing your IC AR/AP and any other IC accounts at each elim level. Just budget for each sub 1 through X and eliminate the IC totals at each Z level