Use of elimination items for segments

You may be required to present consolidated results at each segment level, such as a department, profit center, division, or cost center. To present consolidated results at each segment level, elimination elements are created by the system and are used in elimination processes in expenditures and revenue or consolidation of debts.

This table shows an example of how elimination elements are used:

Region ID	Subregion ID	Parent ID	ID	Segment region
01				Europe
	S10			Middle Europe
		SUS10		Austria
			1001	Modling profit center
			SUS10_ELIM	Elim Austria
		SUS20		Hungary
			3501	Budapest profit center
			3551	Sopron profit center
			3552	Gyor profit center
			SUS20_ELIM	Elim Hungary
		SUS30		Germany
			4107	Dusseldorf profit center
			4108	Hamburg profit center
			4109	Berlin profit center
			4106	Koln profit center
			SUS30_ELIM	Elim Germany
		S10_ELIM		Elim Middle Europe

For example, the Dusseldorf profit center has a revenue of 100 against the Hamburg profit center and 50 against the Gyor profit center. If the Usage of Elimination Items for Segments function is not activated, the regular process eliminates 150 from the Dusseldorf element, After elimination, the Germany parent is displayed incorrectly. For the Germany parent, only 100 must be eliminated because Dusseldorf and Hamburg belong to the same hierarchy.

To display the parent correctly, the elimination must happen on the elimination element instead of directly on the element. The implemented logic verifies whether the partners share the same parent. If they do, then the elimination element for the specific hierarchy is used. In this case, it is Elim Germany. The Dusseldorf and Gyor elements belong to different hierarchies. Therefore, neither Elim Germany nor Elim Hungary can be used. The logic verifies at which level the results of Dusseldorf and Gyor are added together. In this case, it is Middle Europe, so the Elim Middle Europe elimination element is used.