Profit on Inventory Elimination Idea
When goods are sold within the group, and are still in the inventory, the margin must be eliminated.
Interunit profit/loss elimination posting at the buyer:
- Reduction of the inventory value
- Elimination of the interunit profit/loss
You can automate the internal profit in inventory elimination by setting up a consolidation rule.
This feature helps deliver greater efficiency, reduces manual work, and provides better transparency and auditability of elimination of profit in inventory.