Within the framework of elimination activities, you have to distinguish between balance reconciliation for the purpose of information and adjustments, and the actual intercompany elimination. During the phase when you are entering the data for the individual financial statement, it can be useful to reconcile balances without generating postings. In this way you can correct differences before the intercompany elimination. Since the elimination is always based on values in the group currency, you need to make a provisional currency translation for the foreign subsidiaries in advance.

• The list type determines the degree of detail in the list audit trail. List type 1 provides the highest degree of summarization. It reports the values per company pair. When you select the parameter List type 1 w/currency totals, the values are subdivided according to transaction currency. List type 2 provides item values and list type 3 displays the documents. When you use list type 2, the list shows the elimination sets per company pair. It also shows the item balances for the elimination set, once from the perspective of the reporting company (left), and once from the perspective of the partner company (right), as well as the corresponding differential amounts. You have additional options if the relationships between the partners were entered in both local and transaction currency. If you select the Currency split indicator when defining the intercompany elimination, and enter list type 2, this results in a further group change according to currency key. Using cursor pickup, you can branch from certain list types into other list types.

• In order to repeat the intercompany elimination, select the parameters With standardizing entries and With own document type posting. The result is that the postings already performed for the intercompany elimination are taken into account. When the repeat run is run, the system only posts the differences.

• After the intercompany elimination has been carried out, you can regenerate the original list for your information. In this case, you should not select the indicators With standardizing entries and With own document type posting.

• Intercompany elimination is only possible for a whole subgroup, not for individual companies. Since postings are created in pairs, it is recommended that you always start the program for the entire consolidated group. In this case, all the subgroups are automatically processed. You may have subsequent adjustment postings that make it necessary to re-post the relationships between two companies. In this instance, enter the companies in the parameters 1st company of pair and 2nd company of pair. This procedure reduces the running time of the program.

• The parameter Tolerance allows you to set a minimum amount for the differences. Only differences that exceed this amount will be selected. The list will only show company pairs that have differences larger than this minimum value. However, this parameter does not affect posting being carried out.

• The version is the consolidation version that should be processed. The version for the intercompany elimination rules are taken from the consolidation version table.