Context

This function identifies and eliminates intersubsidiary trading.

Prerequisites

As a prerequisite, the closing data from the subsidiaries needs to be collected. All currencies have to be converted into the base currency of the company.

Roadmap Step 1

1. On configuration page step 1, choose the function in which the data of both subsidiaries is located as Input Function ID.

2. Choose the Elimination Category from the dropdown list.

3. To save the changes, choose Save.

Roadmap Step 2 + 3

1. In the left table, choose the criteria when an Intercompany transaction occurs by maintain selections.

2. In the right table, choose the key figures that are involved in the elimination.

3. For indirect elimination, choose the clearing account as the target field.

4. If you want to eliminate less than 100%, choose the field times the percentage in the formula field.

Example of Intragroup Transaction

In this case, there are two subsidiaries A100 and B100. These subsidiaries make a transaction in January of 2015 over 400$.

In Roadmap Step 1, you get all the transactions of both subsidiaries through an input function and choose as elimination ‘direct’.

In Roadmap Step 2, maintain on the left side the selections Company ID = A100 and Business Partner = B100. On the right side, choose the key figure ‘VV100’.

In Roadmap Step 3, maintain on the left side the selections Company ID = B100 and Business Partner = A100. On the right side, choose the key figure ‘VV200’.

Go back to Roadmap Step 1 and generate the function. You can run it now.

For indirect elimination, you do not delete the internal transaction, rather you move it to a clearing account.

You do the same for direct elimination, but additionally you choose the Clearing Account VV101 in the additional “Target Field” column of the elimination list in Roadmap Step 2 and the Clearing Account VV201 in the additional “Target Field” column of the elimination List in Roadmap Step 3.