Introducing the Group Reporting Process
Acquiring Data
Preparing Data
Matching and Eliminating Intercompany Transactions
Consolidating Investments
Reporting Consolidated Data
Running Balance Carryforward

Eliminating Intercompany Payables and Receivables

Objective

After completing this lesson, you will be able to eliminate intercompany payables and receivables

Intercompany Elimination Overview

Now that we've run currency translation and completed the matching and reconciliation process, we can eliminate intercompany transactions. In our course scenario, there are several types of intercompany transactions between the legal subsidiaries. Because intercompany transactions are internal to the corporation they'll need to be eliminated. In general, transactions that need to be eliminated include intercompany accounts payable and receivable, intercompany sales and cost, and intercompany profit in inventory (to name a few).

  • Objective: Eliminate any transactions between the consolidation units so that only transactions with third parties remain.

  • Before running eliminations, you should analyze and resolve intercompany differences.

Intercompany elimination uses as its source data the reported data in group currency. Intercompany data reported by both entities (two-sided elimination) is used to trigger the elimination.

Intercompany elimination doesn’t require specific intercompany accounts because for example the accounts payable and receivable are being posted together with the partner unit information. Partner unit is a dimension in table ACDOCU of Group reporting.

Accounts Payable and Receivable Elimination

Elimination tasks are run from the consolidation monitor. In our scenario, we're using the 2041 - IC Elim. Balance Sheet task, which uses a reclassification rule and only identifies total differences.

The AP AR elimination log is used to:

  1. Confirm the elimination method assigned to the task.
  2. Identify the triggering amount in the AR FS item 121100.
  3. View the elimination to FS item 121100.
  4. View the offset to FS item 21110D.

The image displays a financial data table with columns for consolidation units, partner units, profit centers, and partner profit centers. Key elements such as triggering amounts and journal entries are highlighted with annotations.

When the elimination task is run, what does the system do?

  • The task runs a method.
  • The method performs the following:
    • Selects transactions for the specified FS items that contain partner units
    • Determines the consolidation unit or partner unit to receive the variance posting
    • Determines the account assignments
  • In configuration, the task is assigned to a document type.
  • The document type is assigned to a posting level and is set-up to auto-reverse.

Note

The elimination task performs eliminations for profit center and partner profit center simultaneously.

To report on the elimination results, follow these steps: (see the following image)

  1. Run the Group Data Analysis report.
  2. The original amounts are in posting level 00.
  3. The AP AR elimination occurs in posting level 20.
  4. The Offsetting amounts are booked into FS item 21110D.

Note

There is a small difference between the buyer & seller (1182 vs. -1085).
The image shows a Group Data Analysis interface with a detailed table of intercompany accounts payable and receivable data. The table includes columns for posting level, measures, and amounts in local and group currency.

In reports, the document type dimension can be added to the row or column axis if needed.

The group reporting document for intercompany accounts payable / accounts receivable eliminations provides the following key values:

  • The Document Type is used to identify what task generated the document.

  • The Text field displays the task id, reclassification method, and sequence that was used by the system.

  • Reversed with: Because this a balance sheet elimination, it’s reversed in the following year (in our use case, we’re running eliminations for the last period of 2025).

This image shows a SAP Journal Entry screen with details of a specific entry, including global parameters and posting information. Also shows the reversal information indicates that the document was reversed.

From a report, you can drill down into the intercompany elimination document.

Note

When the elimination is run in an interim period, the reversal occurs in the subsequent period immediately. As of edition 2022, when the elimination is run in the last period of the year, the reversal into the subsequent year occurs when balance carryforward is run.

Eliminate and Report Intercompany Payables and Receivables

Business Scenario

You are in the process of eliminating intercompany payables and receivables at ABC Corporation.

What skills will you develop in this practice exercise?

  • Run the intercompany balance sheet elimination task
  • Report on the eliminated data
  • Review the elimination document

Task 1: Run the Intercompany Balance Sheet Elimination Task

ExerciseStart Exercise

Task 2: Report on the Eliminated Data

ExerciseStart Exercise

Eliminate Intercompany Payables and Receivables

ExerciseStart Exercise
Business scenario

In their financial statements, subsidiaries reported intercompany receivables and payables. From a group perspective, these intercompany values must be eliminated.

The main steps in this exercise are:

  • Run the intercompany balance sheet elimination task.
  • Report on the eliminated data.
  • Review the elimination document.

Note

In this exercise, when you see ##, replace the characters with your group number.

Task 1: Run the Intercompany Balance Sheet Elimination Task

Steps

  1. Open the Consolidation Monitor - New Version tile for the following selections:

    FieldSelection
    Consolidation Chart of AccountsY1 (Consolidation Chart of Accounts)
    VersionU## (U## Act EUR GC)
    Consolidation GroupWorld
    Taskkeep empty
    Process Year Period012.2025
    Task Run Statuskeep empty

    1. Choose the Consolidation Process group.

    2. In the Consolidation Process section, open the Consolidation Monitor - New Version tile.

    3. Enter the selections as provided in the table.

      Result

      The figure shows the Consolidation Monitor with the relevant financial tasks and the task run status.

    4. Choose Go.

  2. Run the 2041 - IC Elim. Balance Sheet task for consolidation unit World.

    1. On the Consolidation Monitor page, select the row for the combination of Consolidation Group World and Task 2041 - IC Elim. Balance Sheet .

    2. On the upper right, choose next to Action.

    3. Choose Update Run.

  3. With the combination of Consolidation Group World and Task 2041 - IC Elim. Balance Sheet selected, navigate into the Details of the 2041 - IC Elim. Balance Sheet task and check the last log.

    1. Select the combination of Consolidation Group World and Task 2041 - IC Elim. Balance Sheet.

    2. For this combination choose >(Navigation) .

    3. On the Task page open the Last Log tab.

    4. Right to Success choose >(Navigation) .

      Result

      The figure shows the Task Log after execution of the 2041 IC Elim. Balance Sheet task.

  4. Make sure that only the following fields are shown in the Columns of the Task Log Items table:

    Column FieldsSelection
    Reclassification Method
    Sequence
    Consolidation Unit
    Partner Unit
    FS Item
    Subitem
    Triggering Amount in GC
    Journal Entry Amount in GC
    Profit Center
    Partner Profit Ctr

    1. On the Task Logs page choose (Settings).

    2. In the View Settings dialog make sure, the Columns tab is selected.

    3. Select the fields provided in the table above.

    4. Choose OK.

  5. Sort the Subitems ascendingly.

    1. Right click the Subitems column.

    2. In the Sort by → Subitem section of the Column Settings dialog choose (Ascending).

  6. Check the elimination task log for consolidation unit CA##.

    1. To the left choose CA## - Cons Unit CA.

      Result

      The figure shows the elimination Task Log for consolidation unit CA.
      • One of the lines for CA## has an IC Account Receivable (121100) opening balance (900) with US## for 10.500 EUR. This is the Triggering Amount.
      • This accounts receivable value of 10.500 EUR is eliminated.
      • The offsetting entry is posted to the Clearing account - Trade Rec/Pay, Current (21110D) FS Item.
      • The same elimination logic applies for the Trade Payables (211100) opening balance (900) posting.

  7. Save the log settings in a view as follows:

    FieldValue
    View (name)U## IC Log
    Set as Default
    Public
    Finally, return to the SAP Fiori Launchpad Home Page.

    1. Choose the (Select View) icon next to Standard.

    2. In the My Views dialog select Save As.

    3. In the Save View dialog enter the data provided in the table above.

    4. Choose Save.

    5. Choose the icon to return to the SAP Fiori Launchpad Home Page.

Task 2: Report on the Eliminated Data

Steps

  1. Open the Group Data Analysis tile.

    1. Go to the Analytics for Group Reporting group.

    2. In the Analytics for Group Reporting section, select the Group Data Analysis tile.

  2. Make the following selections and run the report.

    FieldSelection
    VersionU## (U## Act EUR GC)
    Consolidation COAY1 (Consolidation Chart of Accounts)
    Fiscal Year Period012.2025
    Consolidation GroupWorld
    Period ModePER (Periodic)
    Key DateDecember 31, 2025
    Consolidation Unit Hierarchy$
    Profit Center Hierarchy$
    Segment Hierarchy$

    1. On the Group Data Analysis page, enter your selections as shown in the table above.

    2. Choose Go.

  3. In the Navigation Panel, set the report to defer layout changes.

    1. If needed, use the >(Resize) icon on the left to open the Navigation Panel.

    2. Right to Dimensions, choose (Panel Settings) → Defer Layout Update.

  4. Change the row and column axis as shown below:

    Row AxisColumn Axis
    FS ItemMeasure: Amount in Group Currency
     Consolidation Unit
     Posting Level

    1. Drag Consolidation Unit from the Available Fields section of the Navigation Panel into the Columns section of the Navigation Panel.

    2. Position Consolidation Unit under Measures.

    3. Drag Posting Level from the Available Fields section of the Navigation Panel into the Columns section of the Navigation Panel.

    4. Position Posting Level under Consolidation Unit.

    5. Remove all of the dimensions from the Rows except for FS Item.

  5. Change the display for FS Item to ID Only without the compound key.

    1. Right-click FS Item (in the rows).

    2. Choose Display→ID Only → Non-Compound Key.

  6. In the Navigation Panel, turn Defer Layout Changes off.

    1. Right to Dimensions, choose Panel Settings → Defer Layout Update.

  7. Close the Navigation Panel and collapse the Page Header.

    1. Choose the <(Resize) icon on the left to close the Navigation Panel.

    2. Choose Collapse header(s) in the upper middle of the page.

    Result

    See the following example for group 95 (your values may vary):The image shows the Group Data Analysis interface displaying financial data. The table includes various financial statement items with amounts in different columns for reported data, adjustments, and elimination entries.By including Posting Level in the columns, it is easy to see where the data is coming from. For example, posting level 20 postings represent intercompany elimination postings.

  8. Save the report bookmark as follows:

    FieldValue
    Bookmark NameU## IC Report
    With Filter Bar Values
    VisibilityPrivate

    1. Choose the (Current Bookmark) icon next to <No Bookmark Loaded>.

    2. In the Save Bookmark As dialog select Save As.

    3. Enter the provided data and choose Save.

Task 3: Review the Elimination Document

Steps

  1. Drill down to the BE## group journal entry for the 121100 FS Item and posting level 20.

    1. Select the 121100 FS Item value of -2,100 EUR for BE## in posting level 20.

    2. In the Navigate to dialog choose Display Group Journal Entries with Reporting Logic .

    Result

    The Display Group Journal Entries - With Reporting Logic page opens.

  2. Open the document for the first line item and check the Line Item tab and the General Data tab. Finally, return to the report.

    1. Choose the line item hyperlink for the first line item.

    2. In the dialog choose Display Group Journal Entries .

      Result

      The Display Group Journal Entries page opens.

    3. Open the Line Items tab.

      Result

      You should have several line items.

    4. Open the General Data tab.

      Result

      The figure shows the Group Journal Entry Page with the General Data tab open and the Line Items tab open.
      Notice that Text displays a value of RCL:2041-S2040-010 DELTA. This means that the elimination was performed using task 2041 with reclassification method S2040-010 and it was run against new, i. e. delta records. You should also see Posting Level20 (Two-sided elimination entry) and Document Type2G (IC elim balance sheet (20/AUT)) .

    5. On the upper left, choose <(Back) until you reach the report on the Group Data Analysis page.

  3. Filter the report so that only BE## and FR## data is displayed for Consolidation Unit and Partner Unit.

    FilterValue
    Consolidation UnitBE## FR## (use the search help)
    Partner UnitBE## FR## (use the search help)

    1. Choose (Expand header(s)) .

    2. To add the field Consolidation Unit to the Filter section of the report, choose the Adapt Filters button in the upper right.

    3. In the Adapt Filters dialog select Consolidation Unit and Partner Unit.

    4. Choose OK.

    5. Enter BE## in the Consolidation Unit dropdown in the Filter section.

    6. Choose Enter.

    7. Enter FR## in the Consolidation Unit dropdown in the Filter section.

    8. Choose Enter.

    9. Proceed according to e. - h. for the field Partner Unit.

    10. Choose Go.

    Result

    The figure shows the reported financial data and the two-sided elimination entries for consolidation unit BE and partner unit Fr.
    Now the report will only display intercompany postings for BE## and FR##.

  4. Add Consolidation Unit and Partner Unit to the rows:

    Row AxisColumn Axis
    FS ItemMeasure: Amount in Group Currency
    Consolidation UnitPosting Level
    Partner Unit 

    Check your report. Finally, return to the SAP Fiori Launchpad Home Page.

    1. If needed, use the >(Resize) icon on the left to open the Navigation Panel.

    2. Drag Consolidation Unit from the Columns to the Rows.

    3. Make sure, Consolidation Unit is positioned under FS Item.

    4. Drag Partner Unit from the Available Fields section of the Navigation Panel into the Rows section of the Navigation Panel.

    5. Make sure, Partner Unit is positioned under Consolidation Unit.

      Result

      See the following example for group 95 (your values may vary): The image shows the Group Data Analysis report screen with various filters and a data table displaying financial information. The table includes columns for FS Item, Consolidation Unit, Partner Unit, Posting Level, and Amount in Group Currency.Now you can see the intercompany data for BE## and FR##. For example, the IC Account Receivable (121100) 2.100 EUR value for BE## was imported using Posting Level 00. It was then eliminated using Posting Level 20.

    6. Choose the icon to return to the SAP Fiori Launchpad Home Page.

Learning

SAP FacebookSAP YoutubeSAP LinkedIn