What is interunit profit and loss in SAP EC-CS - Consolidation?

SAP Term: interunit profit and loss

• Component: EC-CS

• Component Name: Consolidation

• Description: A situation that occurs when internal trading partners buy and sell goods and services from each other. These business transactions either affect transferred assets or inventory. Interunit profit and loss is the difference between the book value from the individual financial statements and the value to be reported for the group. A positive difference indicates interunit profit and a negative difference indicates interunit loss.

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• Key Concepts: 
  Interunit profit and loss is a component of the SAP EC-CS Consolidation module. It is used to calculate the net income or loss of a company by taking into account the profits and losses of all its subsidiaries. It is also used to determine the financial performance of each subsidiary and the overall performance of the company. 
  
  How to use it: 
  Interunit profit and loss is used to calculate the net income or loss of a company by taking into account the profits and losses of all its subsidiaries. It is also used to determine the financial performance of each subsidiary and the overall performance of the company. To use this feature, users must first enter all relevant data into the system, such as sales, expenses, assets, liabilities, etc. Once all data has been entered, users can then run reports to view the consolidated results. 
  
  Tips & Tricks: 
  When using interunit profit and loss, it is important to ensure that all data is accurate and up-to-date. This will ensure that the results are accurate and reliable. Additionally, users should be aware that this feature can only be used for consolidated results; individual results cannot be calculated using this feature. 
  
  Related Information: 
  Interunit profit and loss is just one component of SAP EC-CS Consolidation. Other components include consolidation planning, consolidation reporting, consolidation analysis, and consolidation monitoring. For more information on these components, please refer to SAP's official documentation.