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Unit 4: Consolidations and Eliminations

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53 views

Unit 4: Consolidations and Eliminations

100

Uploaded by

s4hanasd 1809
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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2/1/2020 SAP e-book

Unit 4: Consolidations and Eliminations

Figure 179: Purchase Method Investment Elimination

The investment elimination will be discussed first, and then the capital related eliminations
will follow for clarity.
In the example above, the objective is to eliminate the investment for the owner consolidation
unit with an offset so that the balance sheet for the consolidation unit is still in balance.

Figure 180: Purchase Method Creation

Methods perform the following primary tasks when used for the purchase method:

● Which consolidation unit should receive the posting?

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Lesson: Configuring the Rule Based Purchase Method

● When should the method sequence be executed? For example, first or subsequent
consolidation.
● What is the source FS item?
● What are the Debit and Credit FS items?
● How much of the source value should be eliminated?

Figure 181: Purchase Method Sequence 010 Creation Settings

Key points for the Settings tab:

● Periodic Reclassification: Flag to reclassify a periodic value instead of a YTD value; only the
values in the periods per the consolidation frequency are reclassified. Often used when the
triggering item is not the same as the source item.
● consolidation Frequency: Specify if using periodic reclassification. Only the values in the
periods per the consolidation frequency are consolidation idered.
● Cumulative Document: If this indicator is activated, reclassifications generate cumulative
documents instead of one document for each triggering item (subitem/partner).
● Post to Partner Unit: Allows posting with reference to other consolidation units besides the
triggering consolidation unit. This function is only available for reclassifications at posting
levels greater than or equal to 20. Posting levels lower than 20 can only be made to the
triggering consolidation unit.
● Percentage Rate: Used to specify a fixed percentage amount to reclassify. When left blank,
the system refers to the percentage tab of the reclassification sequence.
● Tax on Inv Income: Select this flag if you want an automatic reclassification of income
taxes within the elimination of investment income.
● Percentage Periodic: Since this is not selected, cumulative percentages will be used.

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