"Inconsistency in elimination of intra-company transactions" can't occur
-- Are there any other unique characteristics?
In preparing consolidated financial statements, a parent company's figures must be consistent with its subsidiaries' figures. As a matter of fact, this is very difficult work. However, it has been dramatically changed.
For instance, there are shipping companies which operate by chartering ships from an overseas SPC (Special Purpose Company) they established as shipowner. The case that SPC is practically a dummy company whose finance and accounting functions are under the direct control by a parent company is not uncommon.
The procedure of recording a certain transaction between a parent and its subsidiary in the debit column and the credit column respectively is called a "Journal Entry." Suppose, in the above case, the shipping company is the parent and the SPC is its subsidiary. With conventional accounting software, you must make an entry for each company, that is, two journal entries in total, but with TRANS-Account, you can complete the journal entries of the transaction by a single input.
Let's assume the subsidiary has an outstanding accounts payable to the parent, which means that the parent has an outstanding accounts receivable from its subsidiary on the other hand. Just one manual entry of the figure will complete the journal entries for both companies of the transaction between the parent and the subsidiary at the same time. TRANS-Account was the only software product that had this feature.
In terms of accounting, this is expressed as "decrease in inconsistencies in elimination of intra-company transactions." With this system, such inconsistencies can't occur rather than that such inconsistencies decrease. To do this confirming work, which should take man power and a certain number of days, we have only to click on a button now.