What is 'divestiture accounting' in SAP EC-CS - Consolidation?

divestiture accounting - Overview

• Component: EC-CS

• Component Name: Consolidation

• Description: A process that occurs when a consolidation unit is divested and therefore leaves the consolidation group. Divestiture accounting could take place if, for example: The company is sold to an external trading partner divestiture. The status of the unit changes.

divestiture accounting - Details

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  Key Concepts: 
  Divestiture accounting is a process used in SAP's EC-CS Consolidation component to account for the sale of a subsidiary or other business unit. It involves recording the sale of the subsidiary or business unit, as well as any associated liabilities and assets, in the parent company's financial statements. The divestiture accounting process also includes the recognition of any gains or losses associated with the sale. 
  
  How to use it: 
  In SAP's EC-CS Consolidation component, divestiture accounting is used to record the sale of a subsidiary or business unit. The process involves recording the sale of the subsidiary or business unit, as well as any associated liabilities and assets, in the parent company's financial statements. The divestiture accounting process also includes the recognition of any gains or losses associated with the sale. 
  
  Tips & Tricks: 
  When using SAP's EC-CS Consolidation component for divestiture accounting, it is important to ensure that all relevant information is accurately recorded in the parent company's financial statements. This includes recording any associated liabilities and assets, as well as recognizing any gains or losses associated with the sale. Additionally, it is important to ensure that all relevant information is properly documented and stored for future reference. 
  
  Related Information: 
  For more information on divestiture accounting in SAP's EC-CS Consolidation component, please refer to SAP's official documentation on the topic. Additionally, there