Company Types
| Company Type | Explanation |
|---|---|
| Subsidiary |
A company where you can enter data. A parent company and subsidiaries are connected to a group company. Legally, you may handle a group as if it were a subsidiary, that is, an input company. |
| Group company |
At the end of the consolidation process, consolidated values are transferred and stored in the group company. |
| Group adjustment company |
The group adjustment company is a fictive company created for system use. It is not possible to enter period values, company journals, or acquisition values. You can, however, run reconciliations on these types of companies. For more information, see Group Adjustment Companies. |
| Legal unit |
A legal unit is defined with the purpose of creating a fictive group with operative sub units. In a legal company structure the legal unit represents a legal company. The sub-units represent parts of the legal company, like business units or geographical areas. Period data is entered on sub-units and consolidated into the legal unit, where the legal unit will have period values representing the legal company. The sub-units are parts of the legal company not owned by any other party, and therefore no investment eliminations are made on them. The investments, though, are stored on sub-units, not on legal units. Therefore the investment eliminations are included in the consolidation process also of parallel consolidation types, where legal units normally are not included. |
| Sub-unit |
Operative units of a legal unit. |
Group Companies as Legal Units
The legal company structure can also be used for management analysis of business units by creating fictive groups, where the actual company is defined as a group and the legal unit is selected. The legal unit may be a parent or a subsidiary. The business units are defined as subsidiaries, but are saved as sub-units as they are connected to the legal unit.
Parent Company, Legal Method
In a legal consolidation structure with a legal method, all legal parents, both in the top group and the sub-groups, must be marked as parents when defining the company structure.
For more information, see Management Company Structures.