What is increase in capitalization in SAP EC-CS - Consolidation?

SAP Term: increase in capitalization

• Component: EC-CS

• Component Name: Consolidation

• Description: The activity of increasing capital stock either by means of equity contributions or corporate funds. An increase in capitalization by means of equity contributions is the activity of simultaneously increasing both the capital stock of an investee and the investment book value of an immediate upper unit investor without changing the latter's percentage of ownership. An increase in capitalization with corporate funds is the activity of increasing capital stock while simultaneously reducing other equity items appropriations. This procedure does not increase the investment book value of the investor. This activity is treated in the system in the same way as an increase in capitalization by means of equity contributions.

Smart SAP Assistant

• Key Concepts: 
  Increase in capitalization is a term used in the SAP EC-CS Consolidation component. It refers to the increase in the value of a company's assets due to investments or other activities. This increase is recorded as an increase in the company's capitalization, which is the total value of its assets. 
  
  How to use it: 
  In SAP EC-CS Consolidation, an increase in capitalization is recorded as an increase in the company's capitalization. This can be done by entering the amount of the increase into the relevant field in the system. The system will then automatically update the company's capitalization with the new value. 
  
  Tips & Tricks: 
  When recording an increase in capitalization, it is important to ensure that all relevant information is entered accurately. This includes the amount of the increase, as well as any other details that may be relevant to the transaction. 
  
  Related Information: 
  The SAP EC-CS Consolidation component also allows for decreases in capitalization to be recorded. This can be done by entering a negative amount into the relevant field in the system. The system will then automatically update the company's capitalization with the new value.