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Core Feature

Inter-Company Transactions, Handled Automatically.

Record transactions between your entities and let EmLedger handle the rest. Linked entries, automatic elimination in consolidation, and inter-company balance verification built in.

Short answer

EmLedger automates inter-company transactions and eliminations across multiple entities. Record a transaction once (for example, Entity A invoicing Entity B for shared services) and both sides post automatically with linked entries. The system tracks every inter-company balance in real time and eliminates these transactions automatically in consolidated reports, so portfolio-level financials reflect only true external activity. Inter-company loans, management fees, and stock transfers are all supported with proper accounting on both sides.

That linked record is also what makes intercompany settlement manageable: because both sides come from one entry, each pair's due-to and due-from agree by construction, so you can see the net position at any time, net it down before you move cash, and record the settlement against the right accounts on both sides. Settlement clears what your entities owe each other; eliminations remove that activity from consolidated statements. For the full picture on netting, settlement automation, and inter-company loan tracking, read the guide to intercompany settlement automation.

The Problem

Inter-Company Accounting is Painful

When your entities do business with each other, traditional accounting software makes it a nightmare.

Double Entry in Separate Systems

Log into Entity A to record the invoice. Log into Entity B to record the bill. Hope the amounts match. Repeat endlessly.

Manual Elimination Errors

Forgetting to eliminate an inter-company sale inflates consolidated revenue. One missed entry and your financials are wrong.

Unbalanced Inter-Company Accounts

Entity A says Entity B owes $50,000. Entity B says it owes $47,500. Finding the discrepancy takes hours.

Audit Risk

Auditors scrutinize inter-company transactions closely. Without a clear trail, you spend weeks gathering documentation.

The Solution

Inter-Company Transactions That Just Work

1

Record Once

Record an inter-company transaction from either entity. EmLedger creates the matching entry on the other side automatically.

  • Auto-linked receivables & payables
  • Both sides always in balance
  • Complete audit trail
2

Auto-Eliminate

When you run consolidated reports, inter-company transactions are automatically eliminated. No manual adjustment entries needed.

  • Revenue & expense elimination
  • AR/AP elimination
  • Loan balance elimination
3

Verify & Audit

Review inter-company balances with one report. Every transaction is linked and traceable across entities.

  • Inter-company balance report
  • Discrepancy detection
  • Audit-ready documentation
Common Scenarios

Inter-Company Transactions in Practice

Management Fees

Parent company charges subsidiaries for shared services like HR, IT, or accounting

Inter-Company Loans

One entity lends capital to another with proper interest tracking and amortization

Shared Expenses

Split a vendor bill across entities based on usage or headcount allocation

Transfer Pricing

Entity A sells goods to Entity B at cost or market rate with proper documentation

Capital Contributions

Parent invests capital into a subsidiary with equity tracking on both sides

Dividend Payments

Subsidiary distributes profits to parent with proper accounting entries

Settlement & Netting

See each pair's net due-to/due-from position, then record the settlement on both sides

Automatic Eliminations

Inter-company revenue, AR/AP, and loan balances drop out of consolidated reports

Complete Feature List

Every Multi-Entity Feature Included

Unlimited entities
One-click entity switching
Separate books per entity
Consolidated dashboards
Entity-level permissions
Entity-level settings
Entity hierarchies & groupings
Inter-company transactions
Inter-company inbox
Automatic eliminations
Per-entity bank feeds
Per-entity chart of accounts
Cross-entity drill-down
Entity tagging
Bulk operations across entities
FAQ

Inter-Company Questions

What are inter-company transactions?
Inter-company transactions occur when one entity in your portfolio does business with another entity you also own. For example, a holding company loaning money to a subsidiary, or one LLC invoicing another LLC for shared services. These must be tracked and eliminated in consolidated reports.
How does EmLedger track inter-company transactions?
When you record a transaction between two of your entities, EmLedger automatically tags it as inter-company. Both sides of the transaction (the receivable and payable) are linked. This makes it easy to verify balances and ensures automatic elimination during consolidation.
What does inter-company elimination mean?
Elimination removes inter-company transactions from consolidated financial statements so they reflect only external activity. If Entity A sells $10,000 to Entity B, that revenue and expense are eliminated in the consolidated P&L because no money actually entered or left your portfolio.
Can I see inter-company balances at a glance?
Yes. EmLedger provides an inter-company balance report showing all receivables and payables between your entities. You can see which entities owe each other money and verify that inter-company accounts are in balance.
Does EmLedger handle inter-company loans?
Yes. Record inter-company loans with proper accounting on both sides - the lending entity records a receivable and the borrowing entity records a payable. Interest accruals can be automated, and everything eliminates properly in consolidated reports.
How do management fees between entities work?
Record management fees as inter-company invoices. The parent entity records revenue, the subsidiary records an expense. EmLedger links both sides automatically and eliminates them in consolidated reporting. You maintain proper books for each entity while getting clean consolidated financials.
What is the best intercompany elimination software for multi-entity accounting?
The best intercompany elimination software links both sides of a transaction automatically at the source rather than via post-hoc spreadsheet adjustments. EmLedger does this natively: when you record a transaction between two of your entities, both the receivable and payable post automatically with linked entries, and the transaction is flagged for automatic elimination in consolidated reports. NetSuite and Sage Intacct offer similar capabilities at 5–20× the price; QuickBooks Online and Xero require manual journal entries to eliminate.
How does EmLedger handle inter-company settlement and netting between entities?
Because both sides of every inter-company transaction post from one entry, the due-to and due-from balance for each entity pair stays agreed, and the inter-company balance report shows every pair's position across your portfolio. From there you can see the net amount one entity owes another, settle it with a single transfer instead of paying each invoice individually, and record the clearing on both sides. Settlement clears the balance on the entities' own books; elimination is separate and happens automatically when you run consolidated reports. EmLedger records settlements and shows net positions, but it is not a treasury system: it does not generate bank payment files or run cross-currency netting.
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