Financial group company

You can use a financial group company for these purposes:

• Process the corporate and administrative accounting.
• Accumulate the data from the group’s financial companies for consolidated financial reporting.
• Perform central cash management processes, such as payments and direct debit.

The group company is usually one of the regular financial companies of the multicompany structure, which additionally acts as the group company. You do not have to create a separate financial company to be the group company.

Creating a dedicated financial company is not recommended, because this has these disadvantages:

• An extra company for which table sharing must be set up correctly
• An increased number of companies in the multicompany structure, which affects the performance without returning any benefit.

Setting up a financial group company

In the Finance Company Parameters (tfgld0503m000) session you can link a financial company to the group company. If you link financial companies to another financial company, the latter automatically becomes a group company.

Use the Group Company Parameters (tfgld0101s000) session to define the group company parameters, such as:

• The reference currency
• The dimensions used
• The fiscal period

These parameters apply to the group company itself and to all the companies in the group.