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

SAP Term: interunit elimination

• Component: EC-CS

• Component Name: Consolidation

• Description: Elimination of all effects on consolidated financial statements based on the exchange of goods and services that took place between internal trading partners. Interunit IU elimination covers the following tasks in the system: Elimination of IU payables and receivables Elimination of IU revenue and expense Elimination of investment income

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• Key Concepts: 
  Interunit elimination is a feature of the SAP EC-CS Consolidation component that allows companies to eliminate intercompany transactions between consolidated entities. This eliminates the need to manually adjust the financial statements of each entity to account for intercompany transactions. 
  
  How to use it: 
  Interunit elimination can be enabled in the SAP EC-CS Consolidation component by setting up an intercompany elimination rule. This rule defines which transactions should be eliminated and how they should be eliminated. Once the rule is set up, the system will automatically eliminate the transactions when the consolidation process is run. 
  
  Tips & Tricks: 
  When setting up an intercompany elimination rule, it is important to ensure that all relevant transactions are included in the rule. This will ensure that all intercompany transactions are eliminated and that the financial statements of each entity are accurate. 
  
  Related Information: 
  For more information on interunit elimination in SAP EC-CS Consolidation, please refer to the official SAP documentation.