What is joint venture company in SAP FI-LC - Consolidation?

SAP Term: joint venture company

• Component: FI-LC

• Component Name: Consolidation

• Description: A company that is invested in by an association of two or more investors organized for the purpose of sharing risks that the investors are unwilling to assume individually. Typically, the investors have the same percentage share in the joint venture company, and such joint venture companies are consolidated proportionally. However, the consolidation of joint venture companies is not the same as joint venture accounting, which is not supported by .

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• Key Concepts: 
  A joint venture company is a business entity created by two or more parties to undertake a specific task or project. In the context of SAP FI-LC Consolidation, a joint venture company is a company that is jointly owned by two or more companies. The joint venture company is responsible for consolidating the financial statements of the parent companies and providing consolidated financial statements to the parent companies. 
  
  How to use it: 
  In order to use SAP FI-LC Consolidation, the joint venture company must be set up in the system. This can be done by creating a new company code in the system and assigning it to the joint venture company. Once the joint venture company is set up, the parent companies can then enter their financial data into the system and the joint venture company will consolidate the data and provide consolidated financial statements. 
  
  Tips & Tricks: 
  When setting up a joint venture company in SAP FI-LC Consolidation, it is important to ensure that all of the necessary information is entered correctly. This includes entering all of the parent companies’ financial data accurately and ensuring that all of the consolidation rules are set up correctly. Additionally, it is important to ensure that all of the necessary reports are generated correctly so that the consolidated financial statements are accurate. 
  
  Related Information: 
  For more information on setting up a joint venture company in SAP FI-LC Consolidation, please refer to SAP’s official documentation on setting up a joint venture company in SAP FI-LC Consolidation. Additionally, there are many online resources available that provide step-by-step instructions on how to set up a joint venture company in SAP FI-LC Consolidation.