One-Sided Elimination
Use
Two-sided interunit elimination is based on two selections . This is typically used for eliminations of group-internal business relationships through trade and services.
By contrast, one-sided interunit elimination is a simplified form of elimination. Here, the elimination entries are based on the values listed in only one selection. You can use this simplified form of elimination for the consolidation of IU revenue and expense, in particular.
Prerequisites
In Customizing of interunit elimination, you selected one-sided interunit elimination in method definition.
You defined only one selection of financial statement items to be eliminated. In this selection, you list the accounting objects that are material for the elimination. For example, you may want the revenue items to be material.
As the differential item, you specify the offsetting item, for example, an expense item.
Features
When you run IU elimination, the system calculates a difference equal to the sum of the values in the selection, and posts this value to the differential accounting object.
Constraints
When IU elimination is based on the values of only
one
selection, the system does not calculate and post "real" elimination differences. Instead, it is assumed that the values of the selection for the elimination entries are material, and that corresponding offsetting values (of equal value) exist.
If the values of items in the selection differ from the corresponding offsetting values, the system eliminates inaccurate values during a one-sided elimination.
Example
Say, within your corporate group the revenue of 1000 USD is offset by the expenses of 900 USD. You want to perform one-sided elimination based on revenue values. You define an expense item as the differential item.
Using reversed debit/credit signs, the system posts 1000 USD to revenue and a difference of 1000 USD to the expense item. This process therefore eliminates an undesired excess of 100 USD from expenses.