Creating Elimination Reclassification Methods

Objectives

After completing this lesson, you will be able to:

  • Create elimination reclassification methods

Intercompany Revenue and Cost Elimination Method

To configure a reclassification method, go to the S/4HANA for Group Reporting configuration screen.

Under reclassification, define reclassification methods is highlighted

Two rules (or sequences) are used to eliminate revenue and cost:

  1. 010 - Eliminate revenue for the seller.
  2. 020 - Eliminate cost for the buyer.

In the following image for sequence 010, the triggering consolidation unit will be posted. In this case, the triggering unit is the seller.

Note
In this case, the year to date values will be eliminated. Correspondingly, the document type is configured to reverse the postings.
sequence 010 is set to post to the triggering unit

The S-IUE-PL-GP trigger includes items with the IUE-PL-GP elimination attribute which is being used to select the 411100 Sale of goods FS item.

The selection trigger is s-iue-pl-gp

Because the source is blank, the trigger FS item will receive a debit posting. The offsetting entry is posted to FS item 41200D based on the S-ELIMINATION-TARGET attribute value for FS item 411100.

Note
The Percentage tab is blank because, 100% of the revenue is eliminated.
the target attribute for destinatoin is s-elimination-target

In the following image for sequence 020, the partner consolidation unit will be posted. In this case, the partner unit is the buyer.

sequence 020 is set to post to the partner unit

The trigger for sequence 020 is the same as for 010 because revenue is the basis for the elimination.

The trigger is s-iue-pl-gp

Based on the S-ELIMINATION-TARGET, FS item 41200D will receive a debit posting for the buyer. The offsetting entry is posted to FS item 412200 Cost serv/mat based on the Z-COGS role.

The target for attribute for source is set to s-elimination-target. The destination item role is z-cogs

Configure Intercompany Revenue and Cost Elimination

Business Scenario

At ABC Corporation, you need to eliminate intercompany cost and revenue. You need to configure a reclassification method to control the data selection and posting logic.

What skills will you develop in this practice exercise?

  • Create a reclassification method
  • Assign a task and document type

Task 1: Create a Reclassification Method

Task 2: Assign a Task and Document Type

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