How to Eliminate a Part of the AR/AP Account (Partial Eliminations)

In some cases, intercompany transactions are stored in the same GL account as other regular transactions. For instance, Xero does not allow users to create separate Accounts Payables accounts for intercompany balances. As such, only a part of this account would require an elimination.

To eliminate these intercompany transactions, an adjustment can be posted to eliminate the value of the intercompany transactions. To do so:

1. Go to the companies page by clicking Companies on the left side toolbar

2. Click the 3 dot menu beside the name of the company

3. Select Adjustments from the drop down menu

4. Click the Add adjustment Account button

5. Search for the account that you would like to adjust using the search bar

6. Click the name of this account and then the Add button to add the adjustment

7. Enter the relevant values to adjust for the intercompany transaction

NOTE: When uploading/entering your figures to Joiin, there will be 2 options for how data will be formatted. These include the Balance Sheet/Profit & Loss format as well as the Trial Balance Format.

Trial Balance - When uploading or entering values to Joiin using the Trial Balance format, data will need to be entered in Year to Date as on the Trial Balance. Eg If the following values were entered: 100, 200, 300, then Joiin would present 100, 100, 100 on non Year to Date reports.

Balance Sheet / Profit & Loss - When uploading or entering values to Joiin using the P&L/BS method, data will need to be entered as it is expected to be seen on reports. EG If the following values were entered: 100, 200, 300, then Joiin would present 100, 200, 300 on financial reports.

8. Once the figures have been entered, click Update Adjustment to save your work

9. Ensure that you adjust both sides of the group.

A user guide that covers creating and managing adjustments in Joiin can be found here