Define Intercompany Elimination Rules

Explanation

This activity is used to define the the intercompany elimination rules which should be used in the Group Consolidation process. The purpose of this activity is to define how intercompany trade should be eliminated from the consolidated result.

Prerequisites

In order to perform this activity, a master company (i.e. a company with the Master Company check box selected in the Company/General tab) should exist.

System Effects

As a result of this activity, rules for how intercompany trade should be eliminated in the Group Consolidation process are defined for the master company.

Window

Intercompany Elimination Rules

Related Window Descriptions

Intercompany Elimination Rules

Procedure

To define intercompany elimination rules:

  1. Open the Intercompany Elimination Rules window and create a new record.
  2. Enter an ID for the elimination rule in the Elimination Rule field, and a description in the Elimination Rule Description field.
  3. Enter values in Account From and Account To fields. The List of Values can be used to select the required accounts. Note that accounts from the Balance Sheet and the Income Statement cannot be mixed in the same rule.
  4. Enter values in Matching Account From and Matching Account To fields. The List of Values can be used to select the required accounts. Note that accounts from the Balance Sheet and the Income Statement cannot be mixed in the same rule.
  5. Select a value for the Elimination Posting Method field to specify whether the intercompany trade balances should be eliminated from the original accounts or from accounts defined for the GCP9 and GCP10 posting types in IFS\Posting Control.
  6. In the Valid From Period field, enter the period from which the elimination rule is valid.
  7. Repeat steps 2-6 in order to enter all the required elimination rules.
  8. Save the information.