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Due to/ Due from account for consolidation & elimination

  • 1.  Due to/ Due from account for consolidation & elimination

    TOP CONTRIBUTOR
    Posted 25 days ago
    Hi All

    We are using a shared chart of account. we have a same account number for Due to & Due from in both the intercompanies. Eg

    Company ABC
    Account# : 230100 :  Due to / from company ABC/ XYZ

    Company XYZ
    Account # : 230100 :  Due to / from Company XYZ/ ABC​

    Due we require a Due to / Due from different account for consolidation and elimination. Or the same account is ok and will work

    Please advise your expertise

    Thanks and best regards

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    Nazim Lalji
    Dynamics AX Analyst

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  • 2.  RE: Due to/ Due from account for consolidation & elimination

    SILVER CONTRIBUTOR
    Posted 23 days ago
    You can use the same account, however doing so will add some overhead to reconciling

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    Bradley Bertchie, PMP
    D3FO Project Manager / Financial Functional Consultant
    Edgewater Fullscope
    Denver CO
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  • 3.  RE: Due to/ Due from account for consolidation & elimination

    TOP CONTRIBUTOR
    Posted 23 days ago
    Thanks Bradley for the response

    Please can you advise what does that means add some overhead to reconciling or if you can provide some example would be great

    Thanks and best regards

    ------------------------------
    Nazim Lalji
    Dynamics AX Analyst

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  • 4.  RE: Due to/ Due from account for consolidation & elimination

    TOP CONTRIBUTOR
    Posted 21 days ago
    This approach (having single account per 2-company relationship) will not scale very well.
    For 3 companies you'll need 3 accounts (2+1)
    For 4 companies you'll need 6 accounts (3+2+1)
    For 5 companies you'll need 10 (4+3+2+1)
    and so forth

    For a small set of companies it might be somewhat useful approach as when consolidating you would expect each account to be exactly 0, so can save you some elimination journals

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    Zvika Rimalt
    Functional Consultant
    Vancouver BC
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