What is subsidiary in SAP FI-LC - Consolidation?

SAP Term: subsidiary

• Component: FI-LC

• Component Name: Consolidation

• Description: A company A, a parent company, has a controlling influence over company B, and then company B is known as the subsidiary of company A. This controlling influence is primarily because the investor company A has an investment greater than 50% in the subsidiary company B.

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• Key Concepts: 
  A subsidiary is a company that is owned or controlled by another company, referred to as the parent company. In the context of SAP FI-LC Consolidation, a subsidiary is a company that is part of a larger group of companies and whose financial data is consolidated into the parent company's financial statements. 
  
  How to use it: 
  In SAP FI-LC Consolidation, subsidiaries are set up as separate legal entities in the system. Each subsidiary has its own chart of accounts and can be configured to have different currencies and fiscal years. The system allows for the consolidation of multiple subsidiaries into one consolidated financial statement. 
  
  Tips & Tricks: 
  When setting up subsidiaries in SAP FI-LC Consolidation, it is important to ensure that all subsidiaries have the same chart of accounts and fiscal year. This will ensure that the consolidation process runs smoothly and accurately. 
  
  Related Information: 
  For more information on setting up subsidiaries in SAP FI-LC Consolidation, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_FI_LC_Consolidation/latest/en-US