What is materiality threshold in SAP EPM-IC - SAP BusinessObjects Intercompany?

SAP Term: materiality threshold

• Component: EPM-IC

• Component Name: SAP BusinessObjects Intercompany

• Description: An amount expressed in the group currency enabling you to determine whether an amount is agreed or not.

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• Key Concepts: 
  Materiality threshold is a concept used in SAP BusinessObjects Intercompany (EPM-IC) to determine the level of materiality for transactions between two companies. It is used to identify transactions that are significant enough to be reported in the consolidated financial statements. The materiality threshold is set by the user and can be adjusted depending on the size of the company and the type of transaction. 
  
  How to use it: 
  The materiality threshold is set by the user in SAP BusinessObjects Intercompany (EPM-IC). The user can adjust the threshold depending on the size of the company and the type of transaction. Transactions that exceed the materiality threshold will be reported in the consolidated financial statements. 
  
  Tips & Tricks: 
  When setting a materiality threshold, it is important to consider both the size of the company and the type of transaction. For example, a larger company may have a higher materiality threshold than a smaller company. Similarly, certain types of transactions may require a higher materiality threshold than others. 
  
  Related Information: 
  Materiality thresholds are used in other areas of accounting as well, such as auditing and financial reporting. It is important to understand how materiality thresholds are used in order to ensure accurate financial reporting. Additionally, understanding how materiality thresholds are used can help companies identify potential risks and opportunities.