Logistic area

The financial results of the activities that are carried out in a logistic company, such as production, purchase of materials, and the sales of the product, are posted in financial companies. Logistic companies contain enterprise units, which are linked to financial companies for their financial reporting. In this way, the logistic and financial companies are linked to each other via the enterprise units.

The logistic and financial companies that have links with each other form a logistic area. Internal currency initialization is performed for all the companies within a logistic area. After internal currency initialization, all the companies must comply with the rules of the resulting currency system.

These rules apply to the companies within a logistic area:

• An organization can have more than one logistic company (multicompany). Each logistic company contains one or more enterprise units.
• Each enterprise unit is linked to one financial company.
• The reference currency must be the same for all financial companies that are linked to the enterprise units of one logistic company.
• A financial company can be linked to enterprise units in different logistic companies.
• Logistic companies that have common financial companies linked to their enterprise units must use the same currency system and the same reference currency.
• The currency system and the reference currency of a logistic company are independent of other logistic companies to which it is not linked via the enterprise units. Note that in that case, the companies are not visible in each other’s environment as defined in the Companies (tcemm1170m000) session.