Complete each entity's own period review, resolve material invoice and bill exceptions, confirm the consolidation scope and map the elimination accounts before preparing group adjustments. Versa Cloud ERP can preview clean inter-entity activity and create reviewable elimination drafts, but the controller remains responsible for the reporting policy and the final posting decision.
A group report is provisional while an entity is still posting late transactions or an inter-entity pair remains unexplained. Closing the group first can hide the source of a difference and force finance to reopen work that should have been corrected in the operating entity.
Establish a stable close input
Group finance should first confirm:
- which entities and accounting period are included;
- whether each entity has completed its operational and financial review;
- which entity is designated as the primary consolidating entity;
- which enabled entities are included in consolidation;
- whether elimination GL accounts are mapped in the consolidating entity;
- who may create, review and post manual GL transactions;
- which exceptions remain open and who owns them.
Users creating elimination drafts must work in the consolidating entity and have the Inter-Entity Transactions feature plus Manual GL Transactions and GL Posting permissions. Consolidated reporting requires its own permission.
Clear document exceptions before generating a draft
Use the Inter-Entity Invoice Bill Reconciliation report to resolve missing, unposted, voided, differently dated, differently denominated or unequal pairs. The Inter-Entity Close screen then previews clean revenue and purchase pairs for the selected accounting period.
The screen also shows FIFO inter-entity inventory that remains on hand with markup. That second calculation supports a separate inventory-profit elimination draft. Average-cost inventory profit automation is outside this workflow, and the finance team should not infer a value where the supported FIFO evidence is absent.
Review what the system will place in draft
For clean revenue and purchase pairs, Versa Cloud ERP can create a balanced draft transaction in the consolidating entity using the configured elimination accounts. If an unposted draft already exists for the same period, the workflow opens that draft instead of creating a duplicate. A posted run blocks another draft until the earlier entry is reversed through the approved process.
For remaining FIFO inventory profit, the system creates a separate draft with debit and credit lines tied to the supported part-level calculation. That draft carries an auto-reverse date at the start of the next period, because the remaining inventory position must be recalculated in the new period.
Neither action posts automatically. The accountant reviews the entity, period, accounts, amounts, descriptions and supporting report before posting.
Re-run the group view after approved adjustments
After the source records and approved elimination journals are posted, run Reports → Consolidated Financial again. Compare the result with the reviewed entity statements and the elimination support. Investigate any remaining material difference rather than assuming the presence of a journal makes the group result correct.
Versa Cloud ERP does not determine statutory scope, minority-interest treatment, equity-method accounting or compliance with a particular accounting framework. It also does not silently discover and correct every unlinked inter-entity transaction. Those conclusions remain with the organization's qualified finance advisers and documented policy.
For a buyer evaluating fit, the product offers a controlled path from entity close through linked-document reconciliation, elimination preview, draft creation and consolidated review. The value is a traceable handoff with explicit review points, not an automatic certification of the consolidated statements.
Ask the Versa Cloud ERP AI Advisor about inter-entity period close
