What is not affecting net income in SAP FI-LC - Consolidation?

SAP Term: not affecting net income

• Component: FI-LC

• Component Name: Consolidation

• Description: The changes made to the financial statements, particularly as a result of postings or currency translation, are seen as not affecting net income if, the annual net income remains unchanged.

Smart SAP Assistant

• Key Concepts: 
  FI-LC Consolidation is a feature of SAP software that allows companies to consolidate their financial statements. This feature allows companies to combine the financial statements of multiple entities into one consolidated statement. The feature also allows companies to adjust for any differences between the entities, such as currency exchange rates, without affecting the net income of the consolidated statement. 
  
  How to Use It: 
  To use FI-LC Consolidation, companies must first set up the consolidation process in SAP. This includes setting up the consolidation hierarchy, which defines the relationships between the entities being consolidated. Companies must also define the consolidation rules, which determine how the differences between entities are adjusted. Once these steps are completed, companies can run the consolidation process and view their consolidated financial statements. 
  
  Tips & Tricks: 
  When setting up the consolidation process in SAP, it is important to ensure that all of the entities being consolidated are properly linked in the consolidation hierarchy. This will ensure that all of the entities are included in the consolidated statement and that any differences between them are properly adjusted. Additionally, it is important to review all of the consolidation rules before running the consolidation process to ensure that they are accurate and up-to-date. 
  
  Related Information: 
  For more information on FI-LC Consolidation, please refer to SAP’s official documentation on the topic. Additionally, there are many online resources available that provide step-by-step instructions on how to set up and use FI-LC Consolidation in SAP.