What is 'elimination' in SAP EPM-BPC - Business Planning and Consolidation?

elimination - Overview

• Component: EPM-BPC

• Component Name: Business Planning and Consolidation

• Description: BPC can perform intercompany eliminations and also supports an automatic elimination-by-level for all desired accounts.

elimination - Details

• 
  Key Concepts: 
  Elimination is a process used in SAP Business Planning and Consolidation (EPM-BPC) to remove the double-counting of transactions between related entities. This process is used to ensure that the financial statements of each entity are accurate and reflect the true financial position of the company. 
  
  How to use it: 
  In order to use elimination in SAP EPM-BPC, you must first define the relationships between the entities that need to be eliminated. This can be done by creating a consolidation hierarchy, which will define the parent-child relationships between entities. Once this is done, you can then set up elimination rules that will automatically eliminate any double-counted transactions between related entities. 
  
  Tips & Tricks: 
  When setting up elimination rules, it is important to ensure that all transactions are properly accounted for. This means that all transactions should be eliminated in both directions, so that no double-counting occurs. Additionally, it is important to ensure that all elimination rules are properly tested before they are implemented in production. 
  
  Related Information: 
  For more information on how to use elimination in SAP EPM-BPC, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_EPM_BPC/10.1/en-US/f9f8d7a3e2b14c8a9f3d7c2b6f5e4d6a.html