Intercompany Elimination only at GL level.

[Former Member]

Hello Experts,

We want to perform inter company elimination in consolidation project.

Holding company is owning 100 % in the subsidiary .

The situation is company is maintaining separate GL codes for the intercompany transactions and they want to eliminate entire amount from the GL but there is no trading partner tracked in this.

They have given the GL groupings between which we need to eliminate the amount.

How to perform the intercompany elimination directly at GL level.

Request you to provide your expert comments.

Thanks

[Former Member]

Dear Experts,

Any comment on above post??

Regards,

[Former Member]

Hi,

when loading the data into BPC, map the GL codes from the source system to the IC dimension so that the data in BPC has a trading partner which is derived from the GL code.

That way you can then use the standard BPC IC elim.

BR,

Arnold

[Former Member]

But which trading partner, there is no proper derivation by which  trading partner can be derived..

[Former Member]

Hi,

did I misunderstand your original post: "... is maintainig separate GL codes for the intercompany transactions ..."? I thought that meant there is disitnct GL code for every partner.

If that is not the case and it is simply that there is a GL code for IC sales and a separate GL code for external sales, then you need to look at the method based multiplier.

BR,
Arnold

[Former Member]

yes, we have separate GL codes for IC sales and IC purchase and these are global through out the organization.

can you pls elaborate on the method based multiplier since we are looking for the eliminations  part and as per my knowledge we have 2 business rules for eliminations,  one is US Eliminations and the other is  Eliminations & Adjustment Business Rule.

[Former Member]

HI,

I use the Eliminations & Adjustment Business Rule for the IC elimination. Each rule in this area uses a method based multiplier to determine percentages based on the consolidation method. My method based multiplier for IC eliminations looks something like this.

This multiplier differentiates based on the consolidation method of the reporting entity and the partner entity.

You said, you do not have partner codes, so you would have to build a rule that eliminates all amounts, even those without partner code. Such a rule would have to look similar to this.

Intcomethod 99 is a placeholder for all data, with or without partner code.

With a multiplier like this in your eliminations and adjustment business rule you would specify the GL code for IC sales and BPC would eliminate the full amount from the account.

BR,

Arnold