We sold one of our subsidiaries but we will still manage it in within our own NS account. Apparently, it should no longer be part of the consolidation starting Dec. 16th (date of sale). Since it seems inconvenient to change the hierarchy, we are just thinking of keeping it in the current hierarchy and manually create an elimination journal at the end of each month to zero out the sold subsidiary's financials at the consolidated level. In this way, we can still run the sold subsidiary's financials separately and the consolidated financials won't include the sold subsidiary's financials starting Dec. 16th. Is this a good alternative solution?

what do you mean for an elimination journal? for all transactions (interco and non-interco?)

@Luis what you you might want to do is to create adjustment only book for your parent. then you can post the zeroing journal/trial balance into that AO book which will represent your consolidated amounts

@Marc starting Dec. 16, there are no interco transactions anymore. So basically, the entire financials of the sold subsidiary will be zeroed out at the end of each month by creating an elimination journal posted to the elimination subsidiary.

@Luis - I have to clarify my statement. This will work only if your parent sub is a consolidating sub (i.e. the subsidiary itself has no activity). Alternatively, you may want to create another subsidiary (say, Sold) and post your journal there.

Our parent subsidiary has actual transactions. If I create another subsidiary, it'll be part of our consolidated financials unless I journal it out somehow.

but you want to remove the sold subsidiary, correct? if so if you create zeroing journal in the new sub your consolidated financials will reflect your current status (sans one sub sold)