We're in the process of eliminating intercompany transactions during the corporate close. In this case, we need to automatically eliminate intercompany revenue and cost of sales.
Revenue and cost elimination key points
Intercompany sales are reported with a trading partner, but the cost of goods sold is without the trading partner in most cases.
Because a trading partner only exists on the seller side, the revenue and cost elimination is typically done using a one-sided approach. Using a one-sided approach, the elimination is triggered exclusively by the sales item and posted to both the seller and the buyer.
The following is a comparison of Intercompany (IC) revenue and cost elimination and the AP/AR elimination:
Tasks in consolidation monitor:
2011 IC Elim. Sales
2041 IC Elim. Balance Sheet
Posting Level (PL) 20 document types:
2E IC elim gross profit | PL20 | Auto reverse except at year-end
2G IC elim balance sheet | PL20 | Auto reverse including at year-end