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

SAP Term: IC elimination

• Component: FI-LC

• Component Name: Consolidation

• Description: The elimination of all intercompany IC transactions based on trade goods and services that affect the creation of consolidated financial statements. These eliminations are broken down into Elimination of IC payables and receivables Elimination of IC revenue and expense Elimination of IC profit and loss

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• Key Concepts: 
  IC elimination is a process used in the FI-LC Consolidation component of SAP. It is used to eliminate intercompany transactions between two or more companies in a consolidation group. This process ensures that the consolidated financial statements accurately reflect the financial position of the group as a whole. 
  
  How to use it: 
  In order to use IC elimination, you must first set up a consolidation group in SAP. This involves creating a master company and one or more sub-companies. Once the consolidation group is set up, you can then use IC elimination to eliminate intercompany transactions between the companies in the group. This is done by entering the appropriate data into the IC elimination fields in SAP. 
  
  Tips & Tricks: 
  When using IC elimination, it is important to ensure that all intercompany transactions are properly eliminated. This can be done by double-checking the data entered into the IC elimination fields and making sure that all transactions are accounted for. Additionally, it is important to ensure that all intercompany transactions are eliminated at the same time, as this will ensure that the consolidated financial statements accurately reflect the financial position of the group as a whole. 
  
  Related Information: 
  For more information on IC elimination and how to use it in SAP, please refer to SAP's official documentation on FI-LC Consolidation. Additionally, there are many online resources available which provide detailed instructions on how to use IC elimination in SAP.