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Intercompany Profit eliminations

Hi Experts

I am working on intercompany profit elimination and trying to understand how it works.

We have implemented intercompany profit elimiation for US and trying to work for other countries. My client is using Dual costing for materials to record profit made in intercompany and later to eliminate (I/C profit elimination) at month end.

Can any one explain how does this work ?

Thanks

Deepa

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