What is elimination entry in SAP EC-CS - Consolidation?

SAP Term: elimination entry

• Component: EC-CS

• Component Name: Consolidation

• Description: Entries that turn financial data reported by the consolidation units into consolidated financial data, together with consolidation group-based consolidation entries. For example, elimination entries are posted for: Receivables and payables Revenue and expense Profit or loss in transferred assets Profit or loss in inventory These entries are made as paired consolidation units.

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• Key Concepts: 
  Elimination entry is a feature of SAP EC-CS Consolidation that allows users to eliminate the effect of intercompany transactions from the consolidated financial statements. This is done by creating an elimination entry in the consolidation system, which is then used to offset the intercompany transactions. The elimination entry is created in the consolidation system and is not visible in the source system. 
  
  How to use it: 
  To create an elimination entry, users must first define an elimination account in the consolidation system. This account will be used to offset the intercompany transactions. Once the account is defined, users can create an elimination entry by entering the amount of the intercompany transaction and selecting the elimination account as the offsetting account. The elimination entry will then be used to offset the intercompany transaction in the consolidated financial statements. 
  
  Tips & Tricks: 
  When creating an elimination entry, it is important to ensure that the amount entered is correct and that it matches the amount of the intercompany transaction. Additionally, it is important to ensure that the correct accounts are selected for both sides of the entry. 
  
  Related Information: 
  For more information on how to use SAP EC-CS Consolidation, please refer to SAP’s official documentation on their website. Additionally, there are many online resources available that provide tutorials and tips on how to use SAP EC-CS Consolidation.