What is horizontal group of companies in SAP EC-CS - Consolidation?

SAP Term: horizontal group of companies

• Component: EC-CS

• Component Name: Consolidation

• Description: Combination or association of two or more legal economic entities, in which each company retains its separate legal identity and does not become dependent on another company of the group. The coordination and common control of the horizontal group is achieved primarily through interlocking directorates or also through contractual agreements or the creation of common executive bodies. Special forms of horizontal groups are: communities of interest; syndicates profit pools The System portrays a horizontal group of companies as a consolidation group with more than one parent unit. The system does not eliminate any investment holdings that might exist between these consolidation units.

Smart SAP Assistant

• Key Concepts: 
  A horizontal group of companies is a type of consolidation in SAP's EC-CS Consolidation component. This type of consolidation involves combining the financial data of multiple companies that are in the same industry or have similar business models. The consolidated financial data can then be used to analyze the performance of the group as a whole. 
  
  How to use it: 
  In order to use the horizontal group of companies consolidation feature in SAP's EC-CS Consolidation component, you must first set up the consolidation structure. This involves defining the parent company and any subsidiaries that will be included in the consolidation. Once this is done, you can then enter the financial data for each company and run the consolidation process. 
  
  Tips & Tricks: 
  When setting up a horizontal group of companies consolidation structure, it is important to ensure that all of the companies included in the consolidation have similar accounting methods and reporting standards. This will ensure that the consolidated financial data is accurate and reliable. Additionally, it is important to regularly review and update the consolidation structure as needed to ensure that it remains up-to-date. 
  
  Related Information: 
  For more information on using SAP's EC-CS Consolidation component, please refer to SAP's official documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed tutorials and best practices for using this component.