Definicja elimination of IC payables & receivables
A consolidation activity that eliminates group-internal receivables (intercompany, or IC) and payables.
The terms, payables and receivables,are far reaching. For instance, they also encompass bonds, loans, appropriations, accruals and deferrals, unearned revenue, and so on, as long they are based on group-internal relationships.
From the group's point of view, the consolidated balance sheet may only include payables to and receivables from companies outside of the group, or companies that are not consolidated.
If the valuations of the group-internal debt or receivable items differ between the two companies, a difference occurs during their elimination. The elimination difference can be posted with or without affecting net income.
Słownik i definicje SAPa na E.