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Difference Between Comapny & the Company Code.

Former Member
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Dear All Experts out there,

Can anyone explain me the difference between the Company & the company code in the SAP system with a practical example. Also how we relate the same in SAP.

I am Quiet new in this field, hence very sorry if you feel that this is a very kiddy Qns.

Awiating your expert comments.

regards,

Yogs.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi Yogs,

A Company can be describe in many ways. You can simply say that in SAP system, the "Company" is the parent company and the subsidiaries are the Company Codes. See the example below:

Company Name (parent company): Digital USA

Subsidiary companies: Digital India, Digital JAPAN, Digital CHINA, etc. (with different company codes)

Hope this helps

John

Answers (6)

Answers (6)

Former Member

Hi,

A Company is the unit to which your financial statements are created and can have one to many company codes assigned to it. A company is equivalent to your legal business organization. Consolidated financial statements are based on the companys financial statements. Companies are defined in configuration and assigned to company codes. Each company code must use the same COA (Chart of Accounts) and Fiscal Year. Also note that local currency for the company can be different.

Company Codes are the smallest unit within your organizational structure and is used for internal and external reporting purposes. Company Codes are not optional within SAP and are required to be defined. Financial transactions are viewed at the company code level. Company Codes can be created for any business organization whether national or international. It is recommended that once a Company Code has been defined in Configuration with all the required settings then other company codes later created should be copied from the existing company code. You can then make changes as needed. This reduces repetitive input of information that does not change from company code to company code as well as eliminate the possibility of missed data input.

Best Reagrds,

Amit

Former Member
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This message was moderated.

Former Member
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Hi,

Company code and Company are differents entities. Company is bigger than Company Code.

At the Company level you must difine the G/L accounts, also you need the Company codes too, because each country has a different legal structure and it is define at company code level.

Only one COMPANY for a lot of Company Codes.

COMPANY

Co.Co. 0001 Co.Co. 0002 Co.Co. 0003 Co.Co 0004

Co.Co. 0005 Co.Co.0006 Co.Co.0007

former_member182232
Contributor
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Hi All

May be a bit older forum to refer to but as per above comments can we conclude that

Point 1 : We can create one Company and can have company Codes which are ideally multi countries

Like GE is company and GE INDIA, GE USA as company codes

Point 2 : If point 1 is correct how will we assign the Company Codes to Company when we are retricted by the country Molga in access

Appreciate your earliest response

Regards

Ajay

Former Member
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thnaks to all the techies for posting there views. As all the views made my concept step by step closer.

Former Member
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Hi,

Is it clear or you need more help on it.

Anil

Former Member
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Hi,

Company is subdivided into number of company codes.

Company code will deals with the plants which is linked with.

Example

HP as a whole company

HP india is company code.

if u want to trig balance sheet for the india u can get it. Overall turnover details u can get from the company.

Raja