Intercompany Eliminations.

Rising Complexity

Global supply chains and transfer pricing policies create thousands of internal buy-sell flows every month. Each shipment leaves a markup that turns into profit in inventory (PII) once goods remain on hand at period end. Each internal sale — whether tangible or intangible — presents an opportunity for downstream delays.

During close, controllers must identify, calculate, and reclass that markup so they can be eliminated during consolidation. As entities, SKUs, and valuation methods grow, spreadsheets and lookup formulas buckle. With such manual effort, IC eliminations inevitably slow the close, and reporting risk mounts.

Operational Strain

Manually slicing markup from cost-of-goods-sold and inventory accounts is thankless work. Teams post late-night markup elimination journals, struggle to remember which GL accounts the consolidation system expects, and chase intercompany partners for missing details. One mis-keyed account — or a mismatched base currency — cascades through the close, forcing reruns of consolidation entries and delaying management reporting. While the clock ticks, high-value staff reconcile temporary accounts instead of advising the business. The result: avoidable overtime, audit questions, and confidence-sapping restatements.