What is Inter-Company Journal Entry?
An Inter-Company Journal Entry in ERPNext simultaneously posts entries in two or more group companies to record transactions between related entities.
Setting Up Inter-Company Entries
Go to Accounting → Journal Entry → New. Set the Entry Type to "Inter Company Journal Entry". Select both companies, choose the inter-company accounts, and enter the amounts. ERPNext validates that both sides balance before submission.
Consolidation and Eliminations
For consolidated financials, inter-company transactions must be eliminated. Use the inter-company accounts to track these transactions so they can be identified and removed in the Consolidated Balance Sheet or P&L report.
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