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(ICO)Should a consolidation company be created first?

Nov 15, 2017 at 08:21 AM


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Hi experts,

I am learning some functions of Intercompany integration solutions on SAP Business One. Now, I am at the stage of adding new companies and define them on Landscape. I would like to operate four companies; 1 Head Office, 2 Branches, 1 Consolidation. And I am wondering if I should add and finish setting up the consolidation company first and then do for others, or the order does not matter.

Any information you can provide me would be greatly appreciated.

Thanks & Regards,

Hyunsun Park

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1 Answer

Best Answer
Pankaj Sharma Nov 15, 2017 at 09:41 AM

Hi Hyunsun,

Order does not matter. You can define the companies in the landscape in any order.

But it is recommended to setup the companies in the following order:

1. Consolidation

2. Head Office

3. Branch companies

If you not follow the above order then you have to update the Consolidation Source and Consolidation % for all branch companies again.

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Dear Pankaj Sharma,

Thank you so much!

Can you please answer to this as well?

: when mapping COA of consolidation company with that of other companies, does COA of consolidation company have all the branch accounts (due to/due from account)?

Thanks & Regards,

Hyunsun Park


Hi Hyunsun,

It is not mandatory. you can map branch company accounts to any consolidation company accounts. It totally depends on your reporting needs.

If you would like to know the due to /due from account balances in separate accounts in the consolidation company then you can create those accounts and map the same in the branch companies due from/due to accounts in the consolidation account mapping screen and on performing consolidation, the branch companies account balances will transfer to consolidation company due from /due to accounts.

It is important to map the right accounts in the consolidation account mapping screen in branch companies because the system uses the map accounts to create journal entries in the consolidation companies.


Hi Panjak,

Thank you very much for your help!