What is elimination of interunit profit and loss in transferred assets in SAP FIN-SEM-BCS - Business Consolidation?

SAP Term: elimination of interunit profit and loss in transferred assets

• Component: FIN-SEM-BCS

• Component Name: Business Consolidation

• Description: The elimination of interunit profit and loss incurred from the transfer of noncurrent assets between two consolidation units within a consolidation group. The following elimination entries are posted in the process of consolidation: Elimination of the asset retirement for the selling unit, and the elimination of the asset acquisition at the buying unit Elimination of the computed interunit profit or loss with an effect on net income Depreciation adjustments The interunit profit or loss is the difference between the acquisition book value and the retirement book value, adjusted by the sum of incidental costs.

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• Key Concepts: 
  Elimination of interunit profit and loss in transferred assets is a process in SAP Business Consolidation (FIN-SEM-BCS) that allows companies to eliminate the profit or loss that is generated when transferring assets between different units. This process ensures that the financial statements of the company accurately reflect the true value of the assets. 
  
  How to use it: 
  In order to use this process, companies must first set up a consolidation group in SAP Business Consolidation. This group will contain all of the units that are involved in the transfer of assets. Once this is done, companies can then enter the details of the asset transfer into SAP Business Consolidation. The system will then automatically calculate any profits or losses that are generated from the transfer and eliminate them from the financial statements. 
  
  Tips & Tricks: 
  It is important to ensure that all of the details of the asset transfer are accurately entered into SAP Business Consolidation. This will ensure that any profits or losses generated from the transfer are accurately calculated and eliminated from the financial statements. 
  
  Related Information: 
  This process is part of a larger set of consolidation processes in SAP Business Consolidation. Other processes include currency translation, intercompany eliminations, and consolidation adjustments. All of these processes work together to ensure that a company's financial statements accurately reflect its true financial position.