Eliminiation company

Hi All ,

During creation New legal Entity in 2012 , in General Tab of legal entity form two fields are available.

a) In hierarchy - what is the meaning of Hierarchy and how the check mark enabled ?

b) Elimination company( I very clear about the Consolidation company , but what is the Elimination company and when we use this functionality )?

If any of you have any idea of the above functionality ,please post it here.

This field represents that this company is part of a Group of Companies.

Hierarchy is created to represent Large Corporates where they have multiple companies like Parent/ Subsidiary and Group Company relationship between the companies.

Elimination Companies are used where common transactions between group companies needs elimination from the consolidation to represent true financial picture at Corporate Level.

How does the functionality works in Ax 2012 ?

I am clear about this statement.