Exploring consolidation and elimination in action
In the course of normal business operations, daily transactions are executed on the subsidiary level, then you run the elimination and consolidation process. Assuming that subsidiaries have inter-company transactions covering marketing expense, the USMF company pays the expense from its accounts and identifies the expense part for the DEMF company. The following diagram illustrates the subsidiary inter-company transaction, in addition to elimination and consolidation process on the parent company level:
To execute the consolidation and elimination process, navigate to Consolidation | Consolidate online; the parameter dialog will open up to identify the consolidation and elimination criteria, as shown in the following screenshot. Enter the description, identify the consolidation period, and include the actual amounts:
Then, move to Financial dimensions to identify which dimensions will be carried on the consolidation process and what the segment...
