Intercompany eliminations are essential to producing accurate consolidated financial statements — but they are rarely straightforward. Differences in timing, FX, rounding, or posting practices often mean balances don’t match perfectly.
To help finance teams automate with confidence without losing control, BrizoSystem introduces a new feature: Auto Elimination Log, designed to surface exceptions clearly and keep accountants in the decision loop.
The Challenge with Fully Automated Eliminations
Automation is powerful, but intercompany data is rarely perfect.
In real-world group reporting:
- Small rounding differences are common
- FX movements create unavoidable variances
- Timing differences occur across entities
- Not every mismatch should be eliminated automatically
Blindly auto-eliminating everything can introduce risk, while reviewing everything manually defeats the purpose of automation.
Finance teams need a balanced approach.
Introducing Tolerance Levels for Auto Elimination
With the new enhancement, BrizoSystem now supports tolerance levels for auto elimination.
How it works
- When auto elimination is applied, the system checks whether the difference between intercompany balances is within the defined tolerance level
- If the difference is within tolerance, the elimination proceeds automatically
- If the difference exceeds tolerance, the system does not force the elimination
This ensures automation handles routine variances, while larger or unusual differences receive proper attention.
What Is the Auto Elimination Log?
The Auto Elimination Log is where transparency comes in.
When an intercompany difference exceeds the tolerance level:
- The record is captured in the Auto Elimination Log
- No elimination is applied automatically
- Accountants can review the entry, understand the variance, and decide the appropriate action
This log becomes a central review point for exceptions — instead of issues being hidden or discovered too late.
Validate-Only Mode: Awareness Without Posting
In addition to automated eliminations, BrizoSystem now offers a Validate Only option.
What Validate Only does
- Runs the same elimination checks
- Flags entries that exceed tolerance
- Marks transactions that require attention
- Does not apply any elimination entries
This is particularly useful for:
- Early-stage consolidation reviews
- Dry runs before month-end close
- Training or process validation
- Giving teams visibility without risk
It allows finance teams to be proactive, not reactive.
Why This Matters for Finance Teams
The Auto Elimination Log feature shifts elimination from a “black box” into a controlled workflow.
It helps teams:
- Maintain automation without sacrificing judgment
- Focus attention where it actually matters
- Reduce late-period surprises
- Improve confidence in consolidated numbers
Most importantly, it supports accountability and auditability — every decision is visible and explainable.
A Smarter Balance Between Automation and Control
Not all differences are errors.
Not all differences should be ignored.
By combining:
- Tolerance-based automation
- Exception logging
- Validate-only awareness
BrizoSystem enables finance teams to consolidate faster and more safely.
Final Thoughts
Automation should accelerate consolidation — not create new risks.
With the new Auto Elimination Log, BrizoSystem gives accountants the best of both worlds:
speed where it’s safe, and control where it matters.
This is automation designed for real-world consolidation.