Hi
i am looking for an instruction how to do a elimination of interim results. Is there an automatic way or is the elimination fo interim results a manual adjustment?
A profit within the same Group must be eliminated. For Example Company A sells Goods to company B for 150’000 EUR. Cost of good sold in Company a would be 130’000 EUR. This means 20’000 EUR must be eliminated during the consolidation.
BR
Sophal
+4
Hi,
I have come across this matter in most of the consolidation implementations and I seems that we have to enter an adjustment journal entry at the consolidation level to eliminate the ‘unrealized profit’.
The reason why it is quite complicated to develop a automatic solution, is because the ‘unrealized profit elimination’ logic and the journal entry differs based on the entity relationship and ownership (e.g. parent-subsidiary) and also based on which entity ( parent/ subsidiary) will made the sale.
Hope this may help you…!
Best Regards,
Thushan Wijayawickrama
GCD
Hi,
I have come across this matter in most of the consolidation implementations and I seems that we have to enter an adjustment journal entry at the consolidation level to eliminate the ‘unrealized profit’.
The reason why it is quite complicated to develop a automatic solution, is because the ‘unrealized profit elimination’ logic and the journal entry differs based on the entity relationship and ownership (e.g. parent-subsidiary) and also based on which entity ( parent/ subsidiary) will made the sale.
Hope this may help you…!
Best Regards,
Thushan Wijayawickrama
GCD
Hi Thushan
Thanks for your answer. Do you have a simple guide (must not be fancy) how i can get the numbers out of ifs in order to do a manual adjustment?
Best Regards
Sophal
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