Inventories bought from other entities within the same reporting unit include an internal margin which must be eliminated from the inventories and equity. This margin changes every reported period according to the inventory value in the assets of the buyer at closing date (balance value) and the margin (percentage) calculated by the seller.

The internal margin in the beginning inventory is eliminated from the profit (loss) of the previous years and the change in the internal margin during the year from the income of the year. Internal margins and their changes are eliminated in whole regardless of the size of the group's share of the subsidiary which has purchased or sold the asset with internal margin. The deferred tax is also recorded for these eliminations. The used tax percentage is usually the percentage of the buyer.

Document series type 4 is used for the eliminations of internal margins in inventories. The account definitions (source and target accounts) for the automatic calculation of the internal margins in inventories can be set using a custom template.

The calculation is performed when data is entered in an input template for a source account and the template is saved. The accounts must be connected to the selected data type, in other words, calculations are done only for all the valid source and target accounts.