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

SAP Term: business organization

• Component: FI-LC

• Component Name: Consolidation

• Description: An economic system or unit that has as its purpose the extraction, production, or distribution of goods or services. Its internal structures can vary greatly, depending on the requirements placed by accounting, logistics, and human resource management. Outwardly, a business organization can take the form of a single legal entity a company or as a group of several legal entities corporate group.

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• Key Concepts: 
  Business organization is a term used in SAP to refer to the organizational structure of a company. It is used to define the different departments, divisions, and other organizational units within a company. The FI-LC Consolidation component of SAP is used to manage the consolidation of financial data across multiple business organizations. 
  
  How to use it: 
  The FI-LC Consolidation component of SAP allows users to consolidate financial data from multiple business organizations into one set of consolidated financial statements. This component also allows users to compare financial data across different business organizations and analyze the differences between them. 
  
  Tips & Tricks: 
  When using the FI-LC Consolidation component of SAP, it is important to ensure that all business organizations are properly configured in order for the consolidation process to be successful. Additionally, it is important to ensure that all financial data is up-to-date and accurate before attempting to consolidate it. 
  
  Related Information: 
  The FI-LC Consolidation component of SAP is part of the Financial Accounting (FI) module. Other components within this module include General Ledger (GL), Accounts Payable (AP), Accounts Receivable (AR), and Asset Accounting (AA).