---
title: "Elimination of Income from Investments"
description: "The goal of the app for Elimination of income from investments is to automate the elimination of investment income recorded by the parent company against the subsidiary's dividend distributions or profit transfers in the same period.\n\nElimination can be executed per period or accumulated across several periods.\n\nNon-controlling interests can be considered. They are considered based on the ownership interests stored in the master data or based on individual specifications made on the app interface."
source_url: https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-2/configuring-consolidation-apps/elimination-of-income-from-investments
language: en
last_updated: 2023-08-16
---
# Elimination of Income from Investments

## Overview

The goal of the app for **Elimination of income from investments** is to automate the elimination of investment income recorded by the parent company against the subsidiary's dividend distributions or profit transfers in the same period.

Elimination can be executed per period or accumulated across several periods.

Non-controlling interests can be considered. They are considered based on the ownership interests stored in the [master data](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-2/master-data-administration.md) or based on individual specifications made on the app interface.

## Configuring the Elimination of Income from Investments

To configure the app for the **Elimination of income from investments**, click the app in the structure view and click **Edit** in the displayed dialog.

Configure the steps as described below.

### Settings

In the **Settings** step, specify the general settings for the configuration:

'Settings' step

#### Create postings

- **Per month**\
\
The app eliminates intercompany transactions in each month of the consolidation period and creates monthly elimination postings.
- **Accumulated at the end of the period**\
\
The app cumulatively eliminates intercompany transactions in the last month of the consolidation period and creates an accumulated elimination posting only in the last month of the consolidation period.

{% info-box %}
For any consolidation unit deconsolidated in the consolidation period, an accumulated elimination will be performed in the last month of the consolidation unit's inclusion in the consolidation area.
{% /info-box %}

#### Elimination options

- **Profit or loss transfers**\
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To eliminate profit or loss transfers between investment and investor in the same period
- **Distributions from retained earnings**\
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To eliminate distributions from retained earnings in income and equity

#### Consolidation area and/or unit

The consolidation areas and/or units that the elimination is to be performed for.

**By default all** consolidation areas and units of the group are included.

If you only want to include certain consolidation areas and/or units, activate the **Individual selection** check box and select one of the following options:

- **Include**\
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In the table, select individual consolidation areas and/or units to be considered.
- **Exclude**\
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In the table, select the consolidation areas and/or units that are to be excluded.

### Adjustment levels

In the **Adjustment levels** step, specify the adjustment levels that should be taken into account for the elimination.

{% info-box %}
The app also carries out postings at adjustment levels that are locked for other postings.
{% /info-box %}

'Adjustment levels' step

#### Basis

Adjustment level group including all non-consolidation adjustment levels for data imports and postings you want to include in the elimination.

Please ensure that the adjustment level for proportioning is included in the adjustment level group.

#### Target

Adjustment level for consolidation postings to be used for the postings.

### Elimination

In the **Elimination** step, specify how to deal with income from investments.

'Elimination' step

#### Income from investments

The investor's accounts and/or items for eliminating income from distributions or profit/loss transfers received

#### Post differences

Account and transaction type for posting elimination differences

{% info-box %}
The account itself may not contain intercompany transactions to be eliminated.
{% /info-box %}

#### Advanced settings

**Deviating values**

If you want to define different accounts or transaction types for certain intercompany relationships, activate the option **Advanced settings**.

After that, in the **Intercompany relationship** column, select the two related companies for which you want to define different values and configure a deviating **account** and/or a deviating **transaction type**.

### Profit or loss

The **Profit or loss** step is only displayed if you chose **Profit or loss transfers** as elimination option in the **Settings** step:

'Profit or loss' step

Configure the following details for the elimination of profit or loss transfers:

#### Eliminate profit or loss transfers

Accounts and/or items of the investment that contain the amounts of the profit or loss transferred to be eliminated

#### Configure compensation to non-controlling interests

Activate this option if you want to recognize compensation payments to non-controlling interest and choose the accounts and/or items that contain the compensation to other investors.

{% info-box %}
Compensation payments recognized on the chosen accounts and/or items will be reclassified to profit or loss attributable to non-controlling interests in the statement of profit or loss.
{% /info-box %}

#### Profit or loss attributable to non-controlling interests

Account that the profit or loss from non-controlling interests is to be posted to

### Distributions

The **Distributions** step is only displayed if you chose **Distributions from retained earnings** as elimination option in the **Settings** step:

'Distributions from retained earnings' step

Configure the following details for the elimination of distributions from retained earnings:

#### Eliminate distributions from retained earnings

- The investment's **accounts and/or items** in equity
- **Transaction type** on which distributions are posted. Only distributions posted on this transaction type will be eliminated.

#### Non-controlling interests

Activate this option if you want to **configure the attribution to non-controlling interests** and choose the account for adjusting the non-controlling interests in equity.

#### Adjust non-controlling interest based on

- **Master data**\
\
If you choose this option, the ownership interests defined in the [master data administration](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-2/master-data-administration.md) will be used to calculate the adjustment of non-controlling interests.
- **Individual configuration**\
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If you choose this option, an individually configured percentage value or an absolute amount will be used for the adjustment of non-controlling interests.\
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Use the displayed table to specify the share of distribution that will be attributed to non-controlling interests per investment.\
\
For all other investments that are not configured in this table, the ownership interests defined in the [master data administration](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-2/master-data-administration.md) will be used.

### Report

In the **Report** step, enter the consolidation area(s) that a report on the elimination of income from investments is to be created for, if necessary. The report shows the created elimination postings with any differences and the reclassifications to non-controlling interests.

'Report' step

#### Create report

Activate the option to create a report on the difference amounts when executing the app.

#### Consolidation areas included

Consolidation areas for which the report should be generated

{% info-box %}
The report can only be created for consolidation areas that were included in the **Settings** step for the app execution.
{% /info-box %}

{% idea-box %}
- As long as a step has not been fully configured and/or configuration errors exist, it is displayed with a red exclamation mark .
- Once a step is configured completely and without any errors, it is displayed with a green check mark .
- You can close the configuration dialog by clicking the arrow icon at the top left.
- To change the name of the app, select the app in the tree view and choose **Properties** from the context menu.
{% /idea-box %}

## Executing the Elimination of Income from Investments

You can execute the app for the **Elimination of income from investments** either **separately**, together with other apps in an **executable folder** or as part of **consolidated financial statements**.

How to proceed in each case is described under [Execute consolidation](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/consolidation/consolidation-2/executing-consolidation.md).

## Displaying and Deleting Created Elements

On the **Created elements** tab, the postings that were created during the app execution are shown.

The table provides the following information:

- **Type** of the element
- **Path** under which the element was created When you click on the link, you are taken directly to the posting in the relevant [journal](https://support.lucanet.cloud/en/documentation/consolidation-financial-planning/imports-journals/journale.md) or to the report.
- Date of the **last execution** that created the element

Tab 'Created elements'

If necessary, you can **delete all elements**.

**Note**: Once all elements have been deleted, the state of the wizard is **Not executed** again.

## Displaying the App Properties

The **App properties** are displayed on the tab of the same name:

'Properties' tab

The following **App properties** are displayed:

- **Type** of the element
- Function of the **App**
- **Version** of the element.

**New available version**

As soon as a new version of the app is available that contains changes to the app configuration and/or the calculation logic of the app, the **Refresh** command is displayed, allowing you to update the app to the latest version.

Information about the changes to each version can be found in the **Release Notes**, which can be accessed via the link of the same name.

{% warning-box %}
We {% u %}strongly recommend{% /u %} to update all apps to the new version as soon as possible because it cannot be guaranteed how long an app with an obsolete version can be executed.
{% /warning-box %}