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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

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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