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Hi! We have a parent company in USD and a sub in EUR. The intercompany journal is booked as EUR, example below:
```EUR ENTITY --
DR IC A/R 100 EUR
   CR IC Revenue 100 EUR

USD ENTITY --
DR IC Expense 100 EUR
   CR IC A/P 100 EUR```
Once intercompany eliminates however, there is a balance in Net Income in the elimination subsidiary due to revaluation and translation of the transactions. Is this right?

is that balance hitting a Foreign currency variance account?

If it hits the CTA-E it should be expected. That is an equity account but sometimes due to report layouts can be in a weird spot

Thanks both! Yes, it hits CTA-E. Example elimination entry created below:
```ELIM ENTITY --
   CR IC Expense 100 EUR
DR IC Revenue 90 EUR
DR CTA-Elim 10 EUR```

However sometimes the full Net Income balance doesn't equal CTA-Elim since it looks like other equity accounts eliminating would add to that CTA-Elim balance for the month

You have:
EUR Subsidiary
• DR IC A/R → 100 EUR
• CR IC Revenue → 100 EUR
USD Subsidiary
• DR IC Expense → 100 EUR (converted to USD)
• CR IC A/P → 100 EUR
So far, everything is OK.