I had posted a question about consolidation. While i was looking into the problem, i started reading about intercompany.
Anyone could explain the Difference between these two? Or at least tell me where to look
In my case we have 3 companies, and transactions between each other shouldnt be places in general ledger in consolidated (parent) company. Should be stored elsewhere for viewing.
Intercompany Transactions means that the entries will be made in multiple companies.
Consolidation means grouping specific entries (like every entry for a G/L Account on a specific date) and adding up the value. That one entry is placed in the consolidation company and takes the place of all of the other entries.
I think these are both in the Financials training material, but Iām not for sure.