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Intercompany elimination into multiple accounts based on Entity/TP combination

Hi,

Due to the complexity of our worldwide org structure, we have a need to eliminate IC to multiple accounts based on Entity/TP combination. Is it possible? I understand it's not possible in a standard way or when AP/AR accounts are same for every entity. Wanted to get experts advise if you could share your experience. Thanks in advance.

This is what am looking for.

AR/AP between Entity A and Partner B  should be eliminated to account1 
AR/AP between Entity C and Partner A  should be eliminated to account2 
AR/AP between Entity B and Partner C  should be eliminated to account3 
AR/AP between Entity D and Partner E  should be eliminated to account4 
etc....
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4 Answers

  • Best Answer
    Oct 26, 2017 at 02:14 AM

    The solution I described would work using the DIMLIST property in both Entity and IC filter. Within the business rule, you'll set the destination account for each of the sets of elimination.

    The requirement is somewhat confusing, but if I understood right, you'd have three types of elimination:

    - From top to bottom, bottom to bottom and bottom up.

    If that's the case, you'd need to identify the entities that are on top and the ones at lower level. So you can use as filter in the business rule. Something like:

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    • Not clear: in the Eliminations and Adjustments Rules you can have multiple rules with different names not related to TYPELIM. In each rule you can select same source accounts with property TYPELIM=somevalue and different destination accounts.

  • Oct 25, 2017 at 04:01 PM

    Thanks Lucas and Vadim for your replies.

    When you suggest multiple ELIM rules, are you suggesting multiple I/C accounts for each company? My requirement is that i've one AP account in all entities but it needs to be eliminated differently based on Entity/TP combination.

    here is my ACCOUNT dimension.

    ACCOUNT	          Elim Code
    1150	          ARAP
    DWNSTRM_ELIM
    UPSTRM_ELIM
    HRZNTL_ELIM
    

    Entity org structure is as follows.

    My business requirement is that, eliminations for same account need to happen into different accounts based on Entity/TP combination as follows.

    if i've records as follows.

    ENTITY	INTCO	ACCOUNT	Amount
    A	B	1150	100
    C	A	1150	80
    B	C	1150	75
    

    It needs to be eliminated as follows.

    ENTITY	INTCO	ACCOUNT	       Amount	Notes
    A	B	DWNSTRM_ELIM	-100	Downstream Elimination
    C	A	UPSTRM_ELIM	-80	Upstream Elimination
    B	C	HRZNTL_ELIM	-75	Horizontal Elimination
    

    Even if we can use Entity and IC filters in Business rule, how can i create multiple business rules for same elimination code ARAP?

    another question : I was able to define in Other dimension filter of business rule as "ENTITY = A OR INTERCO = B" for downstream elimination with business rule name "ARAP" and it works. (not using ENTITY PROPERTY FILTER". Is this how you are recommending?). Now, how can i define business rules for upstream and horizontal?

    because the account is same, i can't create another business rule ARAP_UPSTREAM. isn't it correct? does it require multiple 1150 accounts? any other solutions?

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    • Vadim,

      3 sets of accounts are as below.

      original data

      ENTITY	INTCO	ACCOUNT	Amount
      A	B	1150	100
      C	A	1150	80
      B	C	1150	75<br>

      gets converted to 3 sets of accounts as shown below.

      ENTITY	INTCO	ACCOUNT	Amount
      A	B	1150_D	100       DownStream 
      C	A	1150_U	80        UpStream
      B	C	1150_H	75        Horizontal<br>

      so, i can have separate elimination rules for each of 1150_D, 1150_U and 1150_H. hope it is clear.

  • Oct 25, 2017 at 08:06 AM

    If you have a lot of intercompany id's then multiple rules will be very hard or impossible to maintain.

    Agree with Lucas: "what's the business requirement here?"

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  • Oct 25, 2017 at 05:15 AM

    Well, it is possible by using Entity/Other Dimension property filter, however, it would require multiple ELIM rules.

    You can filter the entity and IC dynamically by using DIMLIST for example, check SAP note: 2266174 and 2366544

    Out of curiosity, what's the business requirement here?

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