If a value flow relevant for consolidation purposes has taken place between the business units of a legal entity during the accounting period, the intercompany sales and profits must be eliminated so that you can carry out the statutory individual account closing activities.

For consolidation purposes, a company is first created for each company code in the enterprise. The companies within a legal entity are then consolidated to form a subgroup.

In Sapo the example enterprise, a company is set up for each company code and a subgroup is set up for each legal entity (Ireland, Germany, Czech Republic).