What is elimination of IU profit and loss in SAP EC-CS - Consolidation?

SAP Term: elimination of IU profit and loss

• Component: EC-CS

• Component Name: Consolidation

• Description: An adjustment to transferred assets or transferred inventory in which interunit profits or losses are eliminated. Interunit profits or losses which require elimination are incurred when assets are transferred between two consolidation units within a single consolidation group.

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• Key Concepts: 
  Elimination of IU profit and loss is a feature of the EC-CS Consolidation component of SAP. It allows for the elimination of inter-unit profits and losses between consolidated entities. This eliminates the need to manually adjust the financial statements of each entity to account for these profits and losses. 
  
  How to use it: 
  To use this feature, you must first set up the consolidation structure in SAP. This includes setting up the parent company, subsidiaries, and any other entities that will be consolidated. Once this is done, you can then configure the elimination of IU profit and loss in the EC-CS Consolidation component. This includes setting up the elimination rules, such as which accounts should be eliminated and how they should be eliminated. 
  
  Tips & Tricks: 
  When setting up the elimination rules, it is important to ensure that all accounts are properly mapped to their corresponding accounts in each entity. This will ensure that all profits and losses are properly eliminated when consolidating the financial statements. Additionally, it is important to review the elimination rules periodically to ensure that they are still valid and up-to-date. 
  
  Related Information: 
  For more information on setting up and using the elimination of IU profit and loss feature in SAP, please refer to the official SAP documentation or contact your local SAP consultant.