To perform consolidated business unit closing activities, a company is first created for each company code of the business unit. The companies within a business unit are then consolidated to form a subgroup. Intercompany profits – arising from materials sold from one legal entity to another within a single business unit – are eliminated in the subgroup closing.

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). All the companies in a business unit are assigned to one of these subgroups.