Selections for Interunit Eliminations and Reconciliations
Definition
A pair of characteristic groups (each with financial statement items, and – if applicable – consolidation unit, partner unit, subassignments and other characteristics), which are used to determine the elimination difference.
Use
In interunit eliminations and reconciliations, you use the selections to reflect the business relationships (receivables/payables and revenue/expense) between the consolidation units within a consolidation group.
You can create multiple pairs of selections for each elimination method. The first selection contains the accounting objects; the second selection contains the offsetting accounting objects for the eliminations.
Structure
The system differentiates elimination entries in terms of business relationships, as follows:
The system processes a given pair of consolidation units (for example, consolidation units A and B).
Within a pair of consolidation units, the system processes one pair of selections at a time (selection 1 and selection 2).
The values of consolidation unit A in selection 1 (with consolidation unit B as the partner assignment) and the values of consolidation unit B in selection 2 (with consolidation unit A as the partner assignment) indicate a business relationship. The system eliminates these values and determines any existing differences.
The reverse correlation – that is, the values of consolidation unit B from selection 1 and the values of consolidation unit A from selection 2 – is also regarded as a business relationship.
If you want to restrict the values to be eliminated, you must or can select the following characteristics for each selection:
Characteristic |
Required / Optional |
Purpose |
|---|---|---|
Item |
Required |
Determines the item or the offsetting item |
Consolidation unit(e.g. company; or the combination of company and profit center) |
Optional |
Restricts the selection of consolidation/partner units to these units when you later specify the consolidation group in an IU elimination run. If no consolidation/partner units are specified here, the system scans the business relationships for all unit pairs in the consolidation group. |
Partner unit(e.g. company; or the combination of company and profit center) |
Optional |
|
Subassignment |
Optional |
Restricts the values in the selection to those values that were posted with exactly this subassignment. |
Doc. Type |
Optional |
Further restricts the selection |
Other characteristics (if desired) |
optional |
Note
You determine the consolidation group to be used in the interunit elimination or reconciliation when the corresponding task is started in the consolidation monitor: There you place the cursor on the junction between the consolidation group and the task, then you execute the task.
To define a selection, you use Single Selection .
Example
Say, you create the following pair of selections for a method:
Selection 1: Receivables
Selection 2: Payables
