| Leg | Subsidiary | Account | Intercompany account | Amount (USD) | FX rate | Local amount | Journal entry |
|---|---|---|---|---|---|---|---|
| From | Northwind US | 72000Intercompany Management Fee Income Q3 2026 management fee | 14000Due from Northwind UK | $45,000.00 | 1 | $45,000.00 | JE-001306 |
| Destination 1 | Northwind UK | 72100Intercompany Management Fee Expense Q3 2026 management fee | 24000Due to Northwind US | $45,000.00 | 0.753579 | £33,911.08 | JE-001307 |
Each leg posts in its subsidiary's currency; the Elimination entry nets the Due From / Due To balances (and intercompany income / expense) so consolidated reports don't double count.
| Account | Debit | Credit |
|---|---|---|
| 14000Due from Northwind UK | $45,000.00 | |
| 72000Intercompany Management Fee Income | $45,000.00 |
| Account | Debit | Credit |
|---|---|---|
| 72100Intercompany Management Fee Expense | £33,911.08 | |
| 24000Due to Northwind US | £33,911.08 |
| Account | Debit | Credit |
|---|---|---|
| 24000Due to Northwind US | $45,000.00 | |
| 14000Due from Northwind UK | $45,000.00 | |
| 72000Intercompany Management Fee Income | $45,000.00 | |
| 72100Intercompany Management Fee Expense | $45,000.00 |