Example: Elim. of IU Pay./Rec. with Splitting of Differences

You want to perform for consolidation group CG1 an elimination of interunit payables/receivables with the splitting of differences.

You have collected the following reported financial data, which has breakdowns by transaction currency:

Reported Data

The exchange rates for translating transaction currency to group currency are as follows:

A. Customizing of Interunit Elimination

Define tasks and document type

Define a task for the elimination of interunit payables/receivables.
Define a document type for the elimination of interunit payables/receivables, or use an existing one with the following properties:

Define method layout

Create a new method layout or use an existing one, which can look like this:

You do not need steps (hence no entry for fast entry), nor do you need substeps.

Define method

Create a new method, or use an existing one. Do the following if you create a new method:

Selection 1

Characteristic		Selection 1
Item	=	Receivables

Selection 2

Characteristic		Selection 1
Item	=	Payables

Items for other differences

Characteristic	Debit	Credit	Default
Item	Other Operating Expenses	Other Operating Revenue

Items for currency-related differences

Characteristic	Debit	Credit	Default
Item	Loss from Currency Translation	Gain from Currency Translation

Assign method and document type

Assign the document type and the method to the task for eliminating interunit payables/receivables.

B. Execution of the Interunit Elimination

Execute the task in the consolidation monitor.

Place the cursor at the intersection between interunit payables/receivables and consolidation group CG1 .
Choose Update Run .

The system clears the selections with each other and posts the elimination difference to the differential accounting objects.

Note Note

The system does not post the last line item (which is written in italics). It is only shown here for informational purposes.

End of the note.