What is associated company in SAP FI-LC - Consolidation?

SAP Term: associated company

• Component: FI-LC

• Component Name: Consolidation

• Description: An associated company is an internal trading partner that can be influenced significantly by the parent companies within the subgroup. Typically, significant influence exists when the immediate parent company has an accumulated investment portion of 20 - 50%.

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• Key Concepts: 
  An associated company is a company that is part of a larger group of companies. In the context of SAP FI-LC Consolidation, an associated company is a company that is part of a consolidation group. The consolidation group is made up of multiple companies that are consolidated into one financial statement. 
  
  How to use it: 
  In order to use associated companies in SAP FI-LC Consolidation, you must first create a consolidation group. This can be done by going to the “Consolidation” tab in the SAP system and selecting “Create Consolidation Group”. From there, you can add the associated companies to the consolidation group. 
  
  Tips & Tricks: 
  When creating a consolidation group, it is important to ensure that all associated companies are added to the group. This will ensure that all financial information from each company is included in the consolidated financial statement. 
  
  Related Information: 
  For more information on SAP FI-LC Consolidation and associated companies, please refer to the SAP Help Portal or contact your local SAP consultant.