Multi entity
- Consolidated revenue, intercompany eliminated
- $1,200,000
- Revenue added up before eliminations
- $1,300,000
- Consolidated expenses, intercompany purchases eliminated
- $920,000
- Consolidated profit
- $280,000
Every figure on this page is computed from the inputs entered, by the method stated below it. Rollupvo publishes no tax rule, no accounting standard, no margin and no par: the lead times, the safety weeks, the margins and the ownership shares are yours, and the defaults are a worked example to replace with your own figures.
The figures above start from a worked example ($1,200,000). Change any input and the answer updates as you type.
Download the Multi entity worked example (CSV)
This is a multi entity consolidation schedule, the arithmetic multi entity accounting software does when a parent and a subsidiary have to read as one. Adding the two entities' revenue double-counts whatever one sold the other, so the intercompany sales come out of revenue and the matching purchases come out of expenses; what is left is consolidated revenue, consolidated expenses and consolidated profit. Where the parent owns less than all of the subsidiary, the subsidiary's profit times the share the parent does not own is the minority share, and the rest is the parent's. Every figure is yours; the sheet publishes no accounting standard. Free, on the page, no account; the paid plan files every schedule against the entity.
Eliminations, why the two revenues do not add
$900,000 at the parent and $400,000 at the subsidiary is $1,300,000 added up and $1,200,000 consolidated when $100,000 of the parent's revenue was sales to the subsidiary. The same $100,000 sits in the subsidiary's expenses and comes out there too, so the profit is unchanged by the elimination and only the top line moves.
Consolidated profit, and whose it is
Revenue less expenses across both entities is $280,000 on the worked example. Where the parent owns 80% of the subsidiary, 20% of the subsidiary's own $80,000 of profit, $16,000, belongs to the other owners; $264,000 is attributable to the parent. The share is an input; the sheet publishes no rule on how minority interests are presented.
What the schedule does not do
It nets two entities' profit and loss for a period. It does not consolidate a balance sheet, translate a currency, eliminate unrealised profit on stock one entity bought from the other and still holds, or tell you whether your entities must consolidate at all. Those are your accountant's questions, and the schedule is the arithmetic you bring to that conversation.
Multi entity: common questions
What is multi entity accounting?
Keeping the books of more than one legal entity, a parent and its subsidiaries or a group of sister companies, and being able to read them as one: revenue and expenses added across the entities with whatever they sold each other taken out. The free schedule on this site works that consolidation for two entities from six figures with no account.
Why are intercompany sales eliminated?
Because the group did not earn them. A sale from the parent to the subsidiary is revenue in one set of books and an expense in the other; add the two and the group reports revenue it never received from anyone outside it. Taking the same amount out of consolidated revenue and consolidated expenses leaves profit unchanged and the top line honest.
How is the minority share worked out?
The subsidiary's own profit, its revenue less its expenses, times the share of it the parent does not own: 20% of $80,000 is $16,000 on the worked example. That is the minority share; consolidated profit less it is what belongs to the parent. Your ownership share is an input and the sheet shows what any share implies.