Create Elimination Rules

Elimination rules connect the credit, debit, and difference accounts when you use intercompany elimination. Once you connect the accounts with the rule, the system looks for data in the accounts on trading partner levels. Then it looks for the closest common ancestor level tagged as an elimination level. The system eliminates the data in both the credit and debit accounts at the elimination (only) level, moving any differences between the credit and debit to the difference account.

You can make different rules for different versions. You can also set a start and end date for rules.

Prerequisites

Contact professional services or your implementation partner to get the consolidation capability.

Setting up intercompany accounts is one step when you Steps: Set Up Intercompany Elimination.

Steps: Choose Elimination Method.

Create Trading Partner and Elimination Levels.

Set up Intercompany Accounts.

Security: Model
and Consolidation
permissions.

Navigation

From the nav menu click Modeling
. From the Rules menu, select Elimination Rules
.

Create or Edit Elimination Rules

To create elimination rules, fill out the forms of the two tabs: Definition
and Scope
. In the Definition
tab, you select the accounts that hold the transactions. The only accounts that appear here are those with Yes
selected for the Intercompany
account setting. In the Scope
tab, you select the versions that apply to the rule.

Develop the rules according to the types of intercompany entries. For example, as a best practice create one rule for debit and credit accounts related to receivables and payables, and another rule for all debit and credit accounts related to revenue and COGS. You don't need to create a rule for each possible pair.

To create rules:

Click the New Rule
button at the bottom of the screen.

In the Definition
tab:

Use a clear and descriptive name. Avoid using emojis in names. Rule names appear in the rules list and in Explore Cell.

Examples
:
Sales Offsets
is a poor descriptive name. This might be clear in the context of the Manage Elimination Rules page, but less helpful in the context of Explore Cell.

Intercompany Sales Offsets
is a better descriptive name.

From the Intercompany Debit Accounts
list, select the checkmarks next to the debit accounts you want eliminated with this rule.

Avoid selecting cube-entered accounts.

From the
Intercompany Credit Accounts
list, select the checkmarks next to the credit accounts you wanted eliminated against the debits you selected.

Avoid selecting cube-entered accounts.

From the Intercompany Difference Account
list, select a system account to hold any differences between the debits and credits.

Click the Scope
tab:

From the Applies to Version
list, select all the versions for the rule. If you select your actuals version, choose a target actuals subversion from the dropdown that appears. The sub-version you select is where the elimination calculations appear. Only versions with no child versions appear.

(Optional) In the Rule Period
section, select a start and end date for the rule's application.

(Optional) If you tag intercompany data with custom dimension values, you can leverage them with the Optional Matching Dimensions
. Select any custom dimensions to tell the system to eliminate data that's tagged with matching dimension values. For example, the Product
dimension has dimension values: Laptop, Desktop, Server. If you select Product
for Optional Matching Dimensions
, the rule eliminates data in credit and debit accounts tagged with matching values. You can then run elimination reports to see the eliminating entries for laptops, desktops, and servers.

Save.

To edit the rule, click the pencil icon.

If any intercompany accounts you choose for the rule have shared or default formulas, consider how the formula affects other rules and accounts. The rules that have accounts with formulas must precede the rules that have accounts depending on those formulas.

Change Order of Elimination Rules

The order of the elimination rules in the list is the order they are processed. Rearranging the order may affect how data is eliminated.