What is currency-related elimination difference in SAP FI-LC - Consolidation?

SAP Term: currency-related elimination difference

• Component: FI-LC

• Component Name: Consolidation

• Description: The difference incurred in Intercompany Elimination when two tradingpartners report different values in group currency because of differing local currencies or exchange rates or both, despite both having the same values in transaction currency for a certain business transaction.

Smart SAP Assistant

• Key Concepts: 
  Currency-related elimination difference is a term used in the FI-LC Consolidation component of SAP. It is the difference between the total of the local currency amounts of the subsidiary and the total of the group currency amounts of the subsidiary. This difference is caused by exchange rate fluctuations between the local currency and the group currency. 
  
  How to use it: 
  In order to calculate the currency-related elimination difference, you must first determine the local currency amount and group currency amount for each subsidiary. Then, you must calculate the total of each amount. Finally, you must subtract the total local currency amount from the total group currency amount to get the currency-related elimination difference. 
  
  Tips & Tricks: 
  It is important to remember that exchange rate fluctuations can cause significant differences in the local and group currency amounts. Therefore, it is important to keep track of exchange rate changes in order to accurately calculate the currency-related elimination difference. 
  
  Related Information: 
  The FI-LC Consolidation component of SAP also includes other terms related to currency-related elimination differences, such as foreign exchange gain/loss and unrealized gain/loss. It is important to understand these terms in order to accurately calculate and report on currency-related elimination differences.