Intercompany transactions and consolidation
Record due-to/due-from transactions between entities, reconcile intercompany balances, and produce consolidated statements with eliminations.
- Plans
- Advanced and above (multi-entity)
- Availability
- Available
- For
- Enterprise, Accountants
- In KontoCore
Enterprise → Intercompany · Consolidation
What this does
An intercompany transaction posts matching entries in both entities: a due-from in one and a due-to in the other.
Consolidation combines entity balances and eliminates intercompany balances so group reports don’t double count. Consolidation uses each entity’s base-currency figures; it does not provide transaction-level multicurrency books.
Before you start
- Set up intercompany receivable/payable accounts in each entity.
- Close each entity’s period before consolidating.
How to
Record intercompany
- 1Enterprise → Intercompany → New.
- 2Choose source and destination entity, accounts, amount, and date.
- 3Post — both sides are created and linked.
Consolidate
- 1Enterprise → Consolidation; choose period and entities.
- 2Review the intercompany reconciliation; resolve mismatches.
- 3Run the consolidated report with eliminations.
Statuses and lifecycle
| Status | Meaning |
|---|---|
| Matched | Both sides agree. |
| Mismatched | Amounts or dates differ. |
| Eliminated | Removed in consolidated view. |
Corrections, voids, and reversals
- Reversing one side reverses its linked counterpart.
- Posted records are never edited in place. Void or reverse them; KontoCore records a linked reversing entry with the user, time, and reason.
Provider and availability notes
- FX rate feeds, where used for reporting translation, require a selected provider.
Permissions
- Users need access to both entities to post intercompany entries.
What happens in your books
Entity A pays $5,000 of Entity B’s costs:
| Account | Debit | Credit |
|---|---|---|
| Due from Entity B | 5,000.00 | |
| Checking | 5,000.00 |
Common mistakes
- Entering each side by hand as separate journals, which breaks matching.
Troubleshooting
Consolidated balance sheet doesn’t balance
An intercompany pair is mismatched — check the reconciliation list.
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Last reviewed October 6, 2026