What is business combination in SAP FI-LC - Consolidation?

SAP Term: business combination

• Component: FI-LC

• Component Name: Consolidation

• Description: The combining of two or more legal entities to a single legal and economical entity unit.

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• Key Concepts: 
  Business combination is a process in SAP FI-LC Consolidation that allows companies to combine their financial statements into one consolidated statement. This process is used to create a single financial report that reflects the combined performance of multiple entities. It is also used to eliminate intercompany transactions and to provide a more accurate picture of the company’s financial position. 
  
  How to use it: 
  In order to use business combination in SAP FI-LC Consolidation, companies must first define the entities that will be included in the consolidation. This includes setting up the consolidation hierarchy, which defines the relationships between the entities. Once this is done, companies can then enter the data for each entity into the system and run the consolidation process. The system will then generate a consolidated financial statement that reflects the combined performance of all entities. 
  
  Tips & Tricks: 
  When using business combination in SAP FI-LC Consolidation, it is important to ensure that all data is entered accurately and completely. This will help ensure that the consolidated financial statement accurately reflects the combined performance of all entities. Additionally, it is important to regularly review and update the consolidation hierarchy as needed in order to ensure that it accurately reflects any changes in the relationships between entities. 
  
  Related Information: 
  For more information on business combination in SAP FI-LC Consolidation, please refer to SAP’s official documentation on the topic. Additionally, there are many online resources available that provide helpful tips and tricks for using this feature effectively.