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

SAP Term: elimination of IU profit and loss in transferred assets

• Component: EC-CS

• Component Name: Consolidation

• Description: The elimination of interunit profit and loss incurred from the transfer of assets between two consolidation units within a consolidation group. The following eliminations must be posted for the consolidated financial statements: Elimination of the asset retirement at the retiring consolidation unit and the elimination of the asset acquisition at the receiving unit Elimination of the calculated IU profit or loss with an effect on net income Depreciation adjustments to the interunit IU profit or loss The IU profit or loss is the difference between the gain from retirement and the retirement book value.

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• Key Concepts: 
  Elimination of IU profit and loss in transferred assets is a feature of the SAP EC-CS Consolidation component. This feature allows companies to eliminate the unrealized profits and losses that arise when transferring assets between consolidated entities. This ensures that the consolidated financial statements accurately reflect the true economic position of the group. 
  
  How to use it: 
  To use this feature, companies must first set up their consolidation structure in SAP EC-CS. This includes defining the consolidation entities, setting up the consolidation hierarchy, and mapping the accounts used for consolidation. Once this is done, companies can then use the elimination of IU profit and loss in transferred assets feature to eliminate unrealized profits and losses when transferring assets between consolidated entities. 
  
  Tips & Tricks: 
  When using this feature, it is important to ensure that all accounts used for consolidation are properly mapped in SAP EC-CS. This will ensure that all unrealized profits and losses are accurately eliminated when transferring assets between consolidated entities. 
  
  Related Information: 
  For more information on setting up a consolidation structure in SAP EC-CS, please refer to the official SAP documentation. Additionally, there are many online resources available that provide step-by-step instructions on how to use this feature.