What is 'leading company code' in SAP FI - Financial Accounting?

leading company code - Overview

• Component: FI

• Component Name: Financial Accounting

• Description: The company code or taxes on sales/purchases group of an integrated company that was determined as the contact person for the tax authority. When a group of company codes join together to form an integrated company, they have to determine one company code as the leading company code. The leading company codes handles all communication with the tax authority, for example, returns and payments. The leading company code settles any possible tax payable directly with the company codes of the integrated company.

leading company code - Details

• 
  Key Concepts: 
  A leading company code is a company code in SAP Financial Accounting (FI) that is used to manage the financial data of multiple company codes. It is the main company code in a group of company codes and is responsible for consolidating the financial data of all the other company codes in the group. The leading company code also serves as the default company code for all transactions that involve multiple company codes. 
  
  How to use it: 
  In order to use a leading company code, it must first be set up in SAP FI. This can be done by navigating to the “Company Code” tab in the SAP FI module and selecting “Create Leading Company Code”. Once the leading company code has been created, it can be used to manage and consolidate the financial data of all other company codes in the group. 
  
  Tips & Tricks: 
  When setting up a leading company code, it is important to ensure that all of the necessary settings are configured correctly. This includes setting up the correct currency, fiscal year, and chart of accounts for each company code in the group. Additionally, it is important to ensure that all of the necessary consolidation settings are configured correctly in order for the leading company code to properly consolidate the financial data of all other company codes in the