Two-Sided Elimination Entries (SAP Library

Two-Sided Elimination Entries

Use

The system performs interunit (IU) eliminations for pairs of consolidation units, using a predefined posting level (level 20, or 23 for mutual stock consolidation) that is reserved for this task. The automatic elimination entries which the system generates are based on the financial statement (FS) items for elimination which you specify in Customizing, and on the partner account assignments of the data to be eliminated.

The system generates an elimination entry if:

a consolidation unit reports a value for an FS item requiring elimination (possibly delimited by subassignments - see further on)
another consolidation unit is assigned as the trading partner for this value
you have specified that both of the above consolidation units are to be included in IU elimination

Features

Elimination Entries

Each line item in an elimination entry posts the amount to be eliminated to both a consolidation unit and a partner unit, with a reversed debit/credit sign.

FS Item Sets

You define financial statement item sets for your methods for IU eliminations in Customizing. In these sets, you specify the FS items which eliminate each other.

You can create multiple pairs of FS item sets for each IU elimination method. The first set in the pair contains the FS items for elimination; the second set contains the corresponding offsetting items. These pairs of FS item sets represent a trading partner relationship.

To delimit the which item values are eliminated, you can create the following characteristic values for each item set:

Characteristic	Procedure	What is Listed
Subassignments	The system displays the subassignments that are defined in the breakdown category of at least one of the items in the set. You can specify a single value or a set of values for each subassignment. NOTE: Delimiting by a subassignment value is usually only useful if all items of the set are broken down by such a subassignment.	all item values in the item set that were posted with this subassignment
Consolidation unit or partner unit	You can also display these characteristics and specify a single value or a set of characteristics.	only those consolidation units and partner units that you specify in the IU Elimination selection screen via the consolidation group
Attributes of the consolidation/partner units		only those units with matching attributes
Document type		only those data records that were posted with these document types

You could create the following pair of FS items for a method:

Item set 1: Interest and similar expenses
Item set 2: Interest and similar revenue

You could delimit the selection values to certain consolidation and partner units. For example, if you distinguish between production companies and finance companies, you could constrain the IU elimination to one of these company types. This would allow you to evaluate the IU differences separately.

Differentiation of Trading Partner Relationships

The system differentiates elimination entries according to trading partner relationships, as follows:

The system processes each pair of consolidation units.
For each pair of consolidation units, the system processes one pair of FS item sets at a time.
The item values of consolidation unit 1 in item set 1 (with consolidation unit 2 as the trading partner account assignment) and the item values of consolidation unit 2 in item set 2 (with consolidation unit 1 as the trading partner account assignment) indicate a trading partner relationship. The system eliminates these values and determines any remaining difference.

The reverse correlation also indicates a trading partner relationship, therefore the system eliminates the item values of consolidation unit 2 from item set 1 and the item values of consolidation unit 1 from item set 2.

Elimination Differences

Elimination differences are posted to differential items. You define these items as item pairs in item sets in Customizing. You also define the strategy the system uses to choose which consolidation unit the difference is posted to.

How to control subassignments of the differential items

If the differential item has a breakdown by subassignments, the system needs to know which value is to be posted for each subassignment. You can define a value for each subassignment in Customizing, and you can also set the default value. The system uses the following logic:

If the default flag is not selected, you must enter a value for the subassignment. This value is then always assigned to the differential entry.

Exception: If the breakdown is optional, a value does not have to be entered. If no value is entered, the subassignment is left blank.

If the default falg is selected, the system attempts to obtain the subassignment from the elimination data.

If the default flag is selected and the system cannot derive the subassignment from the data, the system proceeds as follows:

If Customizing shows a value for the subassignment, in addition to the default flag, the system uses assigns this value.

If Customizing does not show a value for the subassignment, the system uses the general default value that is defined in IMG step Default Values for Subassignments .

If there is no general default value and the subassignment is a required breakdown, the system displays an error message.

Other factors concerning the default flag are taken into consideration for subassignments that belong to a compound:

The default flags of compound characteristics (e.g., country and region) should be either both selected or both not selected.
If the independent subassignment has a fixed value in the breakdown category (subitem category-like subassignments), then you can select the default value for the dependent characteristic only if:

all items of both item sets are broken down by these subassignments, and
the fixed value of the independent subassignment is identical for all concerned items (or rather in the breakdown categories of those items)

Otherwise, the data can become inconsistent.

Which data records does the system aggregate to calculate and post elimination differences?

The system aggregates all data records that belong to the same business relationship.

If the differential item has subassignments and the system determines these subassignments from the data records (that is, the default flag is selected), then the system posts the elimination difference for each different subassignment value (see the example).

Posting Documents

A posting document is created for each business relationship.