Do you have any question about this SAP term?
Component: FI-LC
Component Name: Consolidation
Description: The acquisition by an investor of the stock of a company in addition to the stock already held by this investor. The stock is acquired from a third party that is, a company outside the group. This transaction leads to an increase in the investment. If, however, the stock is acquired from another company within the group, this is known as a transfer.
Key Concepts: Step acquisition is a feature of the FI-LC Consolidation component of SAP. It allows companies to acquire subsidiaries in stages, rather than all at once. This allows companies to spread out the cost of the acquisition over multiple periods, and to better manage the financial impact of the acquisition. How to use it: Step acquisition can be used in SAP by setting up a consolidation group for the parent company and its subsidiaries. The parent company can then acquire the subsidiaries in stages, with each stage being recorded in SAP. This allows companies to track the progress of the acquisition and to manage the financial impact of each stage. Tips & Tricks: When using step acquisition, it is important to ensure that all stages of the acquisition are properly recorded in SAP. This will ensure that the financial impact of each stage is accurately tracked and reported. Related Information: For more information on step acquisition, please refer to SAP's documentation on FI-LC Consolidation.