You can use splitting of differences to analyze the reason for the elimination differences.

The system distinguishes between currency-related elimination differences and other elimination differences:

• Currency-related differences are incurred if a consolidation unit and its partner unit have the same transaction currency values in a business transaction, but report different group currency values because they use different local currencies and/or exchange rates.
• Other differences are incurred if a consolidation unit and its partner unit use different ways of reporting business relationships in their financial data.

• The units post their data on different dates
• The units use different accounting and valuation methods
• One unit makes an error in posting

By splitting differences you can post currency-related and other differences to different accounting objects.

When defining the method for interunit eliminations:

• You select the indicator Per Transaction Currency
• You select an exchange rate indicator

• The document type that is assigned must post in the transaction currency and the group currency.
• The accounting objects being eliminated and the differential accounting objects must have a breakdown by transaction currency.

In order to categorize differences, the system reads the FS item values for elimination in both group currency and transaction currency. If elimination differences exist in transaction currency, the system translates these into group currency. The exchange rate indicator you specify in Customizing of the method determines the exchange rate.

The resulting translated value represents the other differences (in group currency). The remaining amount of the entire elimination difference in group currency represents the currency-related differences.

The system posts these differences to the differential accounting objects designated for currency-related differences and for other differences.

You want to eliminate receivables and payables and split elimination differences. The exchange rate for translating the differences from transaction currency (FJD) into the group currency (USD) is 0.4.