What Is a Company Group?
A company group is a group of general ledger companies that you define. Use company groups to streamline processing, inquiry, analysis, and reporting when you have multiple companies.
Consider using the company group feature if any the following conditions are present:
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Your organization creates consolidated financial reports.
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Your organization has more than one general ledger company that posts journal entries or runs period closing at the same time.
When you run programs by company group, the programs process companies in numeric order and creates separate reports for each company.
Example
LGE Conglomerate has three individual companies that post and close at the same time: 123, 124, and 125. LGE defined a company group to associate the three companies.
Now, when they are ready to post journal entries, they can run Journal Posting (GL190) once for the company group. Processing is complete first for 123, then 124, and finally for 125. The application generates three reports, one for each company, when journal posting is complete. Without a company group, LGE would need to run GL190 three times.