Creating and Configuring the Elimination of Intercompany Profit or Loss in Current Assets

Time of consolidation

Per month

The app eliminates the intercompany transactions in each month of the consolidation period and creates monthly consolidation postings.

Accumulated at the end of the period

The app eliminates the intercompany transactions accumulated in the last month of the consolidation period and creates a consolidation posting only in the last month of the consolidation period.

Additional options for consolidation:

Consolidation groups and/or units of the selected group for which the consolidation is to be performed

By default, all consolidation areas and units within the group are included in the consolidation.

If you only want to include certain consolidation groups and units in the consolidation, activate the Individual selection check box and select one of the following options:

Adjustment level group containing all adjustment levels for data imports and adjustment postings which need to be considered during consolidation.

Please ensure that this adjustment level group contains the adjustment level for proportioning.

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

Configure the accounts and transaction types for posting deferred tax assets and deferred tax liabilities arising from the elimination of intercompany profit or loss.

The app automatically determines whether to post deferred tax assets or liabilities based on the elimination direction (profit vs. loss).

Configure the accounts and transaction types for posting deferred tax income and deferred tax expense in the statement of profit or loss.

These accounts serve as counter-postings to the deferred tax assets and liabilities in the balance sheet.

The app automatically determines whether to post deferred tax income or expense based on the elimination direction (profit vs. loss).

Activate the Perform reclassification within the balance sheet option to split intercompany inventory balances after elimination and select the account and the transaction type to be used for the recalassification in the balance sheet.

The app automatically reclassifies the base cost portion (100% - profit/loss rate) from the original inventory accounts to the target account you specify here.

Activate the Perform reclassification within the P&L option to redistribute eliminated intercompany profit or loss amounts across different P&L accounts.

Then configure debit and credit accounts below to split the elimination impact into specific line items.

The reclassification percentage is configured independently in the Percentages step.

Under Default values, specify the percentages for:

The field balance sheet reclassification rate or the P&L reclassification rate is only displayed if you have enabled Reclassifications with in the b alance Sheet or Reclassification wthin the P&L in the Reclasifications step.

Select the Additional settings option to specify percentages that differ from the default values for individual intercompany relationships.

Then configure the Deviating values table as follows:

Retrieving percentages from a statistical ledger

If you want to retrieve percentages from a statistical ledger, select the Retrieve percentages from a statistical ledger option. The step will then be displayed as follows:

Then select the statistical accounts that contain the percentages used to calculate the eliminations. Depending on the options you selected in the Settings and Reclassifications steps, the following statistical accounts are required:

The app retrieves the values from these accounts during execution. The accounts must be of the Percentage type with carry over from previous periods.