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Enter required input for consolidating a partnership return

You'll need to enter detail consistently to ensure that the totals on the supporting detail statements match the amounts on the face of the 1065 return. For example, if you enter detail for “Cost of Goods Sold – Other Costs” at the lowest level for 1 division, you'll need to enter detail at the same level for every other member with “other costs.” If you use the Trial Balance, there's less possibility of a problem with inconsistent levels.
Keeping the level of detail consistent for each partnership in the consolidated group is the key to a successful consolidation. Always try to enter data at the lowest levels of detail (Organizer) within the return.
Complete the elimination return
Use the Eliminations return to enter any eliminating entries you want to use when computing the consolidation. We require an elimination return even if there are no elimination entries. The elimination return only contains adjustments to income and expense amounts, balance sheet items, Schedule M1/M2/M3, and Form 8916A. The system adds these adjustments to the combined return totals to calculate the consolidated amounts.
  • Enter amounts to add as positives.
  • Enter amounts to subtract as negatives. We don’t assume entered amounts are negative.
Complete the consolidation return
Avoid overriding carried-in data on the divisional consolidation return. If you re-consolidate the return, generally you'll lose the amounts you've entered. This is because the system replaces these amounts with new consolidated amounts from the consolidation. To keep these entries from being lost, lock them by right-clicking and selecting
Lock
. Use overrides with caution because they cause your supporting whitepaper detail schedules to show adjustments.
Complete the consolidation checklist
Following the steps listed in the pre-consolidation checklist will help ensure the successful completion of your consolidation. Remember to run the pre-consolidation utilities. These will tell you if you have missing returns or computations pending in any return in the consolidation.

This article applies to:

  • Product: ONESOURCE Income Tax Express RS
  • Return type: 1065 Partnership
  • Subject: Consolidations
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