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

SAP Term: elimination difference

• Component: FI-LC

• Component Name: Consolidation

• Description: The difference that occurs when payables and receivables, or revenue and expense, are eliminated against each other. When data is entered in transaction currency as well as local currency, these differences can be further classified as currency related, and other differences.

Smart SAP Assistant

• Key Concepts: 
  Elimination difference is a term used in the FI-LC Consolidation component of SAP. It is the difference between the total of the consolidated balance sheet accounts and the sum of the individual balance sheet accounts. This difference is caused by the elimination of intercompany transactions and balances. 
  
  How to use it: 
  In order to use elimination difference, you must first set up a consolidation group in SAP. This group will contain all of the companies that are part of the consolidation process. Once this is done, you can then enter the individual balance sheet accounts for each company into SAP. The system will then calculate the total of these accounts and compare it to the total of the consolidated balance sheet accounts. The difference between these two totals is the elimination difference. 
  
  Tips & Tricks: 
  It is important to ensure that all of the individual balance sheet accounts are entered correctly into SAP in order to get an accurate elimination difference. Additionally, it is important to check that all intercompany transactions and balances have been eliminated correctly in order to get an accurate result. 
  
  Related Information: 
  For more information on how to use elimination difference in SAP, please refer to the official SAP documentation on FI-LC Consolidation.