Elimination examples

Internal turnover

A company in the group (D1) has purchased goods for 200 and sold them on for 400 to another company in the group (D2). D2 has sold on the goods for 600. D1 therefore has a profit of 400-200 = 200, and D2 has a profit of 600-400 = 200. The Group result is 200 + 200 = 400. The results do not change, but the artificially high turnover of 400 (D1) +600 (D2) = 1000, should be 'reduced' by the internal turnover of 400 (from D1 to D2). In other words, the goods sold in D2 (400) should be eliminated in the turnover in D1 (400).

To do this we now select D1 / D2 in the matrix. Select the turnover account in D1, the goods sold account in D2, and that there is a sum we want to eliminate.

In the table, enter the figure 400 in the relevant month and save.

In the report, budget123 + will now show the consolidated turnover in four lines: Coast of goods sold D1 = 400; Cost of goods sold D2 = 600; Elimination = - 400; Group turnover = 600.

Similarly, the consolidated costs of goods sold will be shown in four lines: Cost of goods sold D1 = 200; Cost of goods sold D2 = 400; Elimination = -400; Group cost of goods sold = 200.

The consolidated result is still 600 (turnover) - 200 (Cost of goods sold) = 400.

If all turnover (or a fixed amount) in D1 is always being sold to D2, we can enter a %. This means we would not have to enter the figure 400, as budget123+ will look at the turnover in D1 and eliminates it with the cost of goods sold in D2.