The principle of consolidation is to combine the Accounting from 2 different companies. To do it in Odoo:

1. You have to first create a new consolidation from the Consolidation app: Config> Consolidation. Add the target currency and the companies you require:

2. Map the chart of account of each company to the Chart of Accounts you will use in this "combine company", you can go to map account button from the previous screenshot and add a tag on the "Consolidated Accounts" column in both companies. Be aware to select both companies from the drop down menu you use to change from one company to another in order to see both chart of accounts.

3. You have to create a period for the consolidation: Consolidation>Config>Period and add the companies as it is shown:

4. You create a journal entry using the accounts we just mapped for both companies. Bare in mind the journal you use (it is recommended to create one journal just for Inter-company transactions):

5. Go to the period you have created in point 3 and click (RE)COMPUTE button, go to "Consolidated balance" smart button and you will see both companies' amounts with the tag we added on step 2:

6. If you don´t want the inter-company transactions appear on the Consolidated reporting, go to the period created in point 3 and select
   "Exclude Journals" from the 3 dots to add it on the menu:

7. The journal/s added will not appear on the report once you click on (RE)COMPUTE again :