What is horizontal group of companies in SAP FI-LC - Consolidation?

SAP Term: horizontal group of companies

• Component: FI-LC

• Component Name: Consolidation

• Description: A consolidated group that consists of multiple parent companies. All of the parent companies are at the same level - that is, they have no ownership interests in each other.

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• Key Concepts: 
  A horizontal group of companies is a type of consolidation in SAP Financial Consolidation (FI-LC) that allows for the consolidation of multiple companies that are part of the same group. This type of consolidation is used to combine the financial statements of multiple companies into one consolidated financial statement. 
  
  How to use it: 
  In order to use horizontal group of companies in SAP Financial Consolidation, you must first create a consolidation group. This group will contain all the companies that you want to consolidate. Once the group is created, you can then set up the consolidation rules for each company in the group. These rules will determine how the financial statements of each company are combined into one consolidated financial statement. 
  
  Tips & Tricks: 
  When setting up a horizontal group of companies in SAP Financial Consolidation, it is important to ensure that all the companies in the group have similar accounting standards and reporting requirements. This will ensure that the consolidated financial statement is accurate and consistent across all companies in the group. Additionally, it is important to review and update the consolidation rules regularly to ensure that they are still applicable and accurate. 
  
  Related Information: 
  For more information on horizontal groups of companies in SAP Financial Consolidation, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_FIN_CONSOLIDATION/100/en-US