When related companies within a consolidated company transact, keeping correct books may require eliminating the revenue and expenses for subsidiaries at the consolidated level to remove the effect of investment in subsidiaries.
You create elimination subsidiaries in the same manner that you create other subsidiaries except that you check the Elimination box on the subsidiary record.
• Does not count toward maximum of 125 subsidiaries.
• Cannot be a parent.
• Used only for journal entries, not transactions.
• Cannot be selected on a bank account or credit card account record.
• Cannot be selected on item records.