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In many cases, inventory will carry over from one accounting period to the next.

In some cases, this may go on for several periods and carry over into the next year.

On October 24, 2016, the FASB issued Accounting Standards Update 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory.

Eliminating the exception results in more transparent reporting of the tax effects of intra-entity asset transfers, which investors may find useful.

Financial Management in Microsoft Dynamics AX helps you automate your business-critical financial processes so you and your people can be more effective.

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Eliminating entries allow them to do this with physical inventory or with financial information as well.

An eliminating entry is nothing more than an accounting practice used to account for and change how an item is recorded on the balance sheet.