The code part internal is used for internal ledger only, but it isn’t used in the GL. This would be in a scenario where the company uses a general ledger and an additional internal ledger.

Typically the code parts are used for GL (where management accounting typically is done), whilst enabling some to be also used in the IL. Having a code part “internal” means we can use this code part only in the IL, without using it in the GL.

This is different to Internal Code Parts, because there we define which ones to use in the IL or not, whereas this allows to say which ones aren’t for the GL.

Thank you very much, this clarifies. Could you also explain what is the Code Part Function - Internal Elimination used for? 

Best regards

Rutuja

Internal Elimination is used for the Consolidated Accounts functionality, to hold the intercompany counterpart ID in support if intercompany eliminations. 

The consolidated accounts are not group consolidation, hence it’s not really used anymore for new customer implementations nowadays.

Thank you very much.

Regards

Rutuja