Understanding Legal Companies
Legal company and transactional company relationships enable many companies to be unified in one legal company for reporting purposes. You can associate the companies that you use for transaction processing (transactional companies) with companies that you use for legal reporting (legal companies) so that legal reports can contain data for more than one transactional company. At a minimum, a legal company and a transactional company relationship must exist for the default company.
To associate transaction companies with legal companies, you use the Company Localized Data program (P7400010). The system stores information about the association in the Company Additional Information table (F7400010).
If the company that you enter in this program is not already in the Company Additional Information table (F7400010), then this program creates a record for it.