FCCS includes intercompany eliminations as part of consolidation. Which statement best describes automation of eliminations?

• A. They cannot be automated.
• B. They require manual entry.
• C. They can be automated as part of the consolidation engine.
• D. They are not used in FCCS.

Answer: (C)

Intercompany eliminations are automated within the consolidation process. In FCCS, the consolidation engine can automatically generate elimination entries for intercompany transactions, removing intercompany balances and profits from the consolidated financials. This is configured through intercompany elimination rules and mapping of the related accounts, so when entities record intercompany sales, purchases, or loans, the system automatically creates the appropriate offsetting eliminations during consolidation. This reduces manual work and ensures consistent, compliant eliminations across periods. For example, an intercompany sale between subsidiaries would be eliminated by the engine, removing the intercompany revenue and the corresponding cost or receivable/payable impact in the consolidated books. The other statements are not accurate because automation is supported, manual entry is not required for standard intercompany eliminations, and FCCS does use intercompany eliminations in consolidation.