Which attribute must be set in addition to Intercompany Account = Yes to ensure the account participates in eliminations?

• A. Intercompany Entity
• B. Plug account
• C. Intercompany account
• D. Is Plug account

Answer: (D)

In consolidations, intercompany eliminations rely on identifying which accounts are used to balance and remove intercompany transactions. The key is not just marking an account as intercompany, but designating it as a plug account, which tells the eliminations engine to use that specific account as the offset for intercompany balances.

Setting the Intercompany Account flag to Yes marks the account as participating in intercompany activity. But to actually have the account participate in eliminations, you must also set the Is Plug account flag to Yes. This combination designates the account as the balancing entry that the consolidation uses to eliminate intercompany intercompany revenues, expenses, receivables, and payables across entities. Without the plug designation, the account is recognized as intercompany but won’t be applied in the elimination process, so no eliminations will use that balance.

Other attributes like Intercompany Entity define entity relationships, and a separate “Plug account” label does not specifically indicate elimination participation in FCCS—the required flag is Is Plug account.