The Internal Elimination process is used for marking transactions with an elimination code. The marking is done by the updating routine. Before this can be performed the user must define a structure for the internal elimination. Three code parts in the code string are used for the structure. The transactions that are marked with an elimination code can be internal, e.g., trade between cost centers, and the structure can be similar to the organization structure. These transactions can be excluded in queries, fixed reports, and reports that are produced in IFS/Report Generator. Only one internal elimination structure can be valid during a certain time interval.
Basic Data Requirement (BDR) for Internal Elimination
Before entering information on a structure for internal elimination, you must decide the code parts that are used for the elimination code, counter part, and own part.
Elimination Code. The code part the update routine marks with an elimination code according to the structure. By selecting the code part in queries, fixed reports, and reports in the IFS/Report Generator, you can exclude the marked transactions. Select Accounting Define Code String and specify the code part used for the elimination code. Specify the code part function Internal elimination for the code part. The code part used for the elimination code must be open, i.e., the Code Used field must be Yes. The code part requirements must be Blocked for this code part, to prevent manual postings on it. The code part requirements is specified for an account type in Account Types. Specify the elimination codes for the code part in Code Part Values. Specify also an elimination code for the external trade.
Counter Part. When entering information on the structure, you must enter the code part used for the counter part. Example on counter part: The cost center which buys products from another cost center in the company. Note! This cost center can also sell products to other cost centers in the same company, if appropriate. Select Define Code String and specify the code part to be used as counter part. This code part must be open, i.e., the Code Used field must be Yes. The code part requirements must be Can or Mandatory for this code part. The code part requirements is specified for an account type in Account Types. Specify the counter parts for the code part in Code Part Values. Specify also a code part value for the external counter part, i.e., a customer/supplier outside the company.
Own Part. When entering information on the structure, you must enter the code part used for the own part. Example on own part: The cost center which sells products to another cost center in the same company. Note! This cost center can also buy products from other cost centers in the same company, if appropriate. Select Define Code String and specify the code part to be used as own part. This code part must be open, i.e., the Code Used field must be Yes. The code part requirements must be Can or Mandatory for this code part. The code part requirements is specified for an account type in Account Types. Specify the own parts for the code part in Code Parts Values.
Internal Elimination Structure. The internal elimination structure is defined in Internal Ledger Structure. The code part that is used for saving the elimination code is entered. Also the levels, nodes, and the code parts values in the structure are entered. The structure can be displayed in a layout.
Vouchers and Updating Routine
When an internal elimination structure is used in the company the code part values for the own part and the counter part are entered for the transactions. This is for example done in Manual Supplier Invoice or in Voucher Entry. The updating routine marks the transactions with an elimination code according to the structure.
Follow-up, Internal Elimination
The transactions that the updating routine has marked with a code can be excluded in queries, fixed reports, and reports that are produced in IFS/Report Generator. The authority for a user to retrieve information from the general ledger is specified in the Authority folder in IFS/General Ledger.