Getting into Profit on Inventory Elimination

Objective

After completing this lesson, you will be able to Get an idea of profit on inventory elimination.

Profit on Inventory Elimination

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.

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