What is parent company in SAP FI-LC - Consolidation?

SAP Term: parent company

• Component: FI-LC

• Component Name: Consolidation

• Description: The parent companies are those companies in a subgroup that have a substantial or dominating influence over other subgroup companies.

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• Key Concepts: 
  A parent company is the main company in a group of companies that are consolidated into one financial statement. In SAP, the parent company is the company that owns the other companies in the group and is responsible for consolidating their financial statements. The parent company is also responsible for creating and maintaining the consolidation rules that are used to combine the financial statements of the other companies in the group. 
  
  How to use it: 
  In SAP, the parent company is responsible for setting up and maintaining the consolidation rules that are used to combine the financial statements of all of the companies in the group. This includes setting up consolidation accounts, defining how transactions should be consolidated, and setting up consolidation hierarchies. The parent company can also set up additional rules to ensure that all of the companies in the group are following the same accounting standards. 
  
  Tips & Tricks: 
  When setting up consolidation rules in SAP, it is important to ensure that all of the companies in the group are following the same accounting standards. This will help to ensure that all of the financial statements are accurately combined into one consolidated statement. Additionally, it is important to regularly review and update consolidation rules as needed to ensure that they remain accurate and up-to-date. 
  
  Related Information: 
  The FI-LC Consolidation component in SAP allows users to easily manage and maintain their consolidation rules. This component also provides users with a variety of reports and analysis tools that can be used to review and analyze their consolidated financial statements. Additionally, this component can be used to create consolidated financial statements for multiple companies within a group.