Setting Up Elimination Units
With Consolidations, you can automate intercompany eliminations and more accurately analyze consolidated results. When you consolidate business units, the system creates eliminating journal entries. Eliminating journals are directed to an elimination unit, a type of business unit that is designed specifically to support consolidated reporting.
Elimination Entries Directed to Elimination Units
The consolidated business entity does not have its own ledger. It is actually a reporting construct made up of the combined ledger balances of the selected business units and the intercompany offset amounts posted to the ledger for the elimination unit.
This section discusses:
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
BUS_UNIT_TBL_GL1 |
You can use this page to define each elimination unit directly. You can also define elimination units from the consolidation tree. |
Use the General Ledger Definition - Definition page (BUS_UNIT_TBL_GL1) to define each elimination unit directly.
You can also define elimination units from the consolidation tree.
Navigation:
Set Up Financials/Supply Chain, Business Unit Related, General Ledger, General Ledger Definition, Definition
This example illustrates the fields and controls on the Eliminations Business Unit Definition page. You can find definitions for the fields and controls later on this page.
Add and maintain elimination business units the same as you would add any business unit on the General Ledger Definition page. Make sure to select the Consol - For Elimination Only check box, as this is what distinguishes an elimination unit from other units and its treatment for the consolidation process. You can also add elimination units to the consolidation tree in the same way that you add any detail ChartField value.
The placement of the elimination units on the tree tells the consolidation process what business units' intercompany activity is eliminated within the elimination unit. For example, the ELIM5 elimination unit in the consolidated management reporting tree, CONSOLIDATE_CORP, is defined as the elimination unit for the ASIA/PAC consolidation; therefore, intercompany activity between Japan and Australia are eliminated within ELIM5 .
Assigning a ledger to an elimination unit is done the same way that you handle regular business units. The base currency of the ledger must be the same currency used for consolidation.