Eliminating Intercompany Payables and Receivables

Objectives

After completing this lesson, you will be able to:

  • Eliminate intercompany payables and receivables

Intercompany Payables and Receivables Elimination Result

When the 2042 elimination task is run, the AP and AR values are eliminated with offsets. In the following image, the total difference between Germany and the US is 7087. The 7087 is broken down into a currency difference of 1692 and a transaction difference of 5395.

Note
Reason code can displayed in group reports if needed.
The report includes a group currency amount of -1692 for 21110r and -5395 for 21110t

After running the elimination, the Elimination Status in the Manage Reconciliation Close app, is Completed.

The eliminaton status is completed for all pairs of trding partners

As a result, the matching, reconciliation, and elimination is complete.

Intercompany Payables and Receivables Elimination Simulation

Before running elimination task, you can run the simulation. You can run the simulation with transaction code: ICA_ELIM_SIM. When you run the simulation, enter your selection criteria like in the following example:

Enter the elimination method, the consolidation document type, the consolidation units, partner units, chart of accounts, consolidation version, fiscal year and period.

You can use the output to preview the results before running the elimination. The output breaks the data down into unique combinations of consolidation units, partner units, and FS item. Each unique combination is displayed as a Step in the output.

Each step displays the amounts for unique combinations of consolidation units, partner units, and FS item
Note
The simulation doesn't generate any postings.

Eliminate Intercompany Receivables and Payables

Business Scenario

Now that you have configured the ICMR integrated elimination, you can eliminate your intercompany accounts receivables and payables. You are keen to see how the system separates transaction and currency related variances. In addition, you are looking forward to running the Manage Reconciliation Close app because it includes both reconciliation as well as the elimination status data.

What skills will you develop in this practice exercise?

  • Run the intercompany elimination task
  • Close the reconciliation and elimination process
  • Report on the eliminated data

Task 1: Run the Elimination Task

Task 2: Close the Reconciliation and Elimination Process

Task 3: Report on the Eliminated Data

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