Execution of Reconciliations and IU Eliminations

Purpose

You perform this process if you want to carry out reconciliations or interunit eliminations for:

Elimination of IU payables and receivables
Elimination of IU Revenue and Expense
Elimination of investment income

Process Flow

A. Customizing of Interunit Elimination

Define tasks and document types

Define the tasks you need:

for the reconciliations and
for interunit elimination

For each IU elimination task, define a document type with the following properties:

Posting level 20 (two-sided elimination entry)
Automatic posting
Posting in group currency and – if needed – in transaction currency;notposting in local currency

For a reconciliation task, use the same document type that is used for the associated IU elimination task.

Define method layout and method

An IU elimination task and its associated reconciliation task use the same method layout and the same method. Define a method layout and a method for each pair of tasks (for example, the elimination of interunit payables/receivables and the reconciliation for that elimination), or use an existing method layout and an existing method.

Do the following if you create a new method layout:

Select the characteristics you need for the elimination and/or reconciliation (see also Selections for IU Eliminations ).
If needed, create steps in the method layout.

For example, you need steps if you want to eliminate different receivables and payables items with each other (for example, step 1 for current receivables and current payables, and step 2 for long-term receivables and long-term payables).

Do the following if you create a new method:

For the entire method:

In general settings, determine:

whether a one-sided or two-sided elimination is performed
whether splitting differences is performed
whether limits for elimination differences are used

Define the details for the limits.

For the entire method or for each method step, determine:

the accounting objects for the selections
the differential accounting objects
the strategy for posting differences
the level to be used for checking limits

Assign method and document type

Assign the document type and the method to the task for interunit elimination.
Assign the method to the reconciliation task.

B. Execution of the Interunit Elimination

Execute the reconciliation and IU elimination tasks in the consolidation monitor.

Note Note

You determine the consolidation group to be used in the interunit elimination or reconciliation by placing the cursor on the intersection joining the consolidation group and the task.

End of the note.

Result

The system clears the selections with each other and, if elimination differences are incurred and do not exceed the limit, the system posts the differences to the differential accounting objects.