Specify Internal Elimination Structure

Explanation

Use this activity to specify the internal elimination structure. The structure is used for exclusion of transactions on specified levels via elimination codes. The transactions can be internal, such as in trade between cost centers, and the structure can be similar to the organization. Three code parts are used for the structure. Only one internal elimination structure can be valid during a certain time interval.

Prerequisites

Before the structure can be specified, the following must have been completed:

The three code parts must have been defined in Define Code String in IFS/Accounting Rules. One of the code parts must have been defined for the code part function Internal Elimination.
The code part requirement for the code part used for the code part function must be Blocked. The code part requirement for the other code parts must be Can or Mandatory for the accounts that are used for internal elimination. The code part requirements are entered in Account Types or Account in IFS/Accounting Rules.
The code part values for all three code parts must have been entered in Code Part Values in IFS/Accounting Rules.

System Effects

As a result of this activity, the internal elimination structure can be used when the updating routine is performed. The updating routine marks the appropriate transactions with corresponding elimination codes. These codes can then be used as selection terms in queries in IFS/General Ledger and in reports created in IFS/Report Generator.

Window

Internal Elimination Structure

Related Window Descriptions

Internal Elimination Structure

Procedure

Use the following procedure to specify an internal elimination structure:

Open Internal Elimination Structure.
Use the New function and enter the structure identity and the description for the structure.
In the General tab, specify the code part on which the structure is built. Specify Code Part Counter Part, Code Part Internal Elim, and External Code Part Value by using the List of Values. Specify when the structure is to be valid.
In the Levels tab, specify the levels and the elimination code for the level.
In the Nodes tab, specify the nodes and the level for each node.
In the Code Part Values tab, specify the code part values.
Check the structure in the View Structure tab.
Right click to change the Structure Status. You can select any one of the following options i.e. Set Status to Active to activate the structure, Set Status In Progress if it is in progress or select Set Status Obsolete if the structure is no longer in use.
Note: By default the structure status that appears is In Progress.

Example on an Internal Elimination Structure

The following is an example on how to specify a structure for internal elimination. The structure is built for the code part CC (Cost Center).

Outline for the internal elimination structure in this example:

    Level 2, Elim. Code 1                          TOT
                                                    |
    Level 1, Elim. Code 2           DEP.Y                    DEP.X
                                       |                        |
    Code Part CC                 310      320           330    340    340

Code Part for the Elimination Code

Open 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.
Open Account Types. The code part requirements must be Blocked for the code part used for the elimination code. This prevents manual postings on the code part.
Open Code Part Values. Specify the elimination codes 1-2 for the code part used for the elimination code. Specify also an elimination code for the external trade, e.g., EXT.

Code Part for the Own Part

Open Code Part Values.
Find the cost centers (assume that they already exist in the company).
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.

Code Part for the Counter Part

Open Define Code String and specify the code part to be used as counter part. The code part must be open.
Open Account Types. The code part requirements must be Can or Mandatory for the code part used as counter part.
Open Code Part Values. Specify the counter parts for the code part, i.e., the same code part values as for the own part. In this example the cost centers, e.g., 310, are used for the structure. Specify also the code part value EXTERN for the external counter part. In this example all external trade partners are defined as one counter part.

Structure for Internal Elimination

Open Internal Elimination Structure. Use the New function and the identity and the description for the structure.
Select the General tab. Specify the code part used for the own part, i.e. the cost centers. Specify Code Part Counter Part, Code Part Internal Elim, and External Code Part Value using List of Values. Specify Valid From and Valid To. Save the information.
Select the Levels tab. A text for the code part is displayed. Specify the levels and start with the level at the top. Use the new function. Specify Level 2 in the Level field. Specify an optional description. The Level Above field is not filled in. Specify 1 in the Elim.Code field. Save the information. Use the New function again. Specify Level 1 in the Level field. Specify an optional description. Specify Level 2 in the field Level Above. Specify 2 in the Elim.Code field. Save the information.
Select the Nodes tab. Enter the nodes TOT, DEPX and DEPY, and specify the levels. Start with the node at the top. The node TOT has not any node above.
Select the Code Part Values tab. Enter the code part values that are specified in the company and connect them to a node. In the example there are the cost center 310, 320, 330, 340, and 350.
Select the View Structure tab. Mark the levels. The layout is displayed in the Structure Layout field.
Right click to change the Structure Status. You can select any one of the following options i.e. Set Status to Active to activate the structure, Set Status In Progress if it is in progress or select Set Status Obsolete if the structure is no longer in use.
Note: By default the structure status that appears is In Progress.

Enter Vouchers and Update

Select Voucher Entry in IFS/Accounting Rules.
Enter manual vouchers. Use the code parts for own part and counter part for costs and revenues concerning trade among the cost centers. Enter also transactions for trade between a cost center and the counter part EXTERN, i.e., the counter part that does not exist in the structure.
Open Update GL Vouchers in IFS/General Ledger. Start the updating. Check the update history afterwards.

Query

Select GL Balance Analysis in IFS/General Ledger.
Find information on transactions including the elimination code EXT to display all external trade.

Report

Open General Ledger Transaction Report in IFS/General Ledger.
Preview a report for external trade. Use the elimination code EXT in the selection.