Now that intercompany matching and reconciliation is configured, we can set up the integrated elimination components. These components include:
- The posting rule
- The elimination method
- The document type and elimination task assignment
With the Define Posting Rule app, you define rules for automatic postings that are triggered by the related intercompany matching and reconciliation (ICMR) processes.
When you create a new posting rule for group reporting, you select the Elimination Postings for Group Reporting (SC001) posting scenario. The posting scenario represents a business context where an intercompany matching and reconciliation process can trigger automatic postings. The postings include eliminations, adjustments, subledger clearings, and accruals. The posting scenario also determines document header fields, control options, and document item fields that are available for defining posting rules.
The general information includes the rule id, the description, and the posting scenario.
The Posting Side determines who receives the differences:
- Post differences to the leading unit
- Post differences to the partner unit
The Transaction Differences section is used to determine the FS item that receives the transaction posting (in the following example, 21110T). The subitem and subitem category are copied from the source data. The Transaction Differences represents the true difference i.e. no currency effect. Transaction Differences are calculated by translating the transaction currency difference to group currency with the closing exchange rate.
The Currency Translation Differences section is used to determine the FS item that receives the currency translation posting (in the following example, 21110R). The subitem and subitem category are copied from the source data. Currency Translation Differences are calculated by first translating the local currency amount difference to group currency with the closing exchange rate, and then subtracting the transaction difference.
The Other Differences section is used to determine the FS item that receives the other posting (in the following example, 21110o). The subitem has a fixed value of 980. Other Differences are due to timing issues. For example, Other Differences occur if new postings aren't rolled into ICMR yet, which causes a variance between ICMR and ACDOCU. The system determines Other Differences by subtracting transaction and currency translation difference from the total difference.
The Offset section is used to determine the FS item that receives the offset posting (in the following example, 21110C). The subitem and subitem category are copied from the source data. The offsetting entries keep the consolidation units in balance.