Revenue & COGS elimination in Group Reporting

[MahmoudYounis]

When using the Consolidation Monitor to eliminate revenue against COGS, we follow two sequences:

1. Sequence 010 – Eliminate revenue using a clearing account

2. Sequence 020 – Eliminate COGS using the same clearing account

My question:
If there's one revenue financial statement item but multiple related COGS accounts, how do we handle the elimination in Sequence 020? Specifically, how should we distribute the revenue elimination across the various COGS accounts linked to that revenue item?

[JAnnapureddy · Accepted solution]

This is a common scenario: having multiple COGS accounts in the Chart of Accounts (CoA).

You can include all the COGS accounts (FS items) in the Sequence 20 selection. Add the PU in the selection using the PU hierarchy.

During the GL Account vs. FS Item mapping, you can map all source COGS accounts to a single global or group-level COGS account. (Note: This approach is not recommended.)

[MahmoudYounis · Accepted solution]

Thanks a million for your help