In this step you specify profit and loss accounts for valuation differences that arise in business transactions between group companies.
When you use parallel valuation approaches/transfer prices, payables and receivables are only posted using legal valuation, since that represents the amount in which the payment is made. If, however, you want to record other valuation approaches in the valuation clearing account, you need to post the difference to accounts for intercompany profits so that this amount appears in the group report. The system assigns the valuation difference for each item to the corresponding profit center.
With this function you can designate valuation clearing accounts in which to record valuation differences separately for each company code and partner company.
The profit and loss accounts must already exist in Financial Accounting The Automatic postings only indicator must be selected for those accounts.
For each partner company, specify the debit and credit accounts for elimination postings between group companies.