Company code

[Former Member]

hi

this could be a silly request.. i am trying a self learning about SAP, but couldnt imagine what "company code" means, in fact, i dont see a lot of examples in the SDN.

can someone explain to me the term "company code" in english ? or just give me a link for case examples..

thank you

[ferry_lianto · Accepted solution]

Hi,

Company is the smallest organizational unit for which individual financial statement can be drawn according to the relevant commercial law.

Company code is the smallest organizational unit for which complete, self-contained set of accounts can be drawn up for external reporting purposes

For example:

Tata is a company and TCS, Tata Power,Tata Steel are company code under a company TATA. Under Company code you have business area associated with it where the business areas may be scattered in different parts of the world where you can have reporting done for different business area or you can also call it as Profit Centre.

For configuring SAP, generally three steps are required

1) create company name and address

2) creation of company code

3) currency and country setting

4) Assign company code to company

In same organisation i.e. in one company more than two company codes are maintaing, then its better to copy from other company code from ec01, later on you can customised/change specific settings according to client requirements.

If your want seperate setting in your own company code, that time its better to configure by creation rather than copy

In above that is your choice and need for reqirement.

Otherwise you can upload certain data by creating company code.

Hope this will help.

Regards,

Ferry Lianto

[Former Member · Accepted solution]

Hi I was wondering how you can actually carry out the steps that you have listed? Is there a site that actually shows how to create a company code from scratch? Furthermore, I will truly appreciate any help or advice from you.

-Tina Sarh

[Former Member · Accepted solution]

Hi,

I am not sure if there is a free/public website for this config. I think this book has good info about the FI config.

http://www.amazon.com/gp/product/0782125972/qid=1148001048/sr=1-1/ref=sr_1_1/002-5918379-5504034?s=b...

Any suggestions.

Regards,

Vishal(vishalsms@yahoo.com)

[Former Member]

Company code is basic Organizational unit is SAP FI ( Financial accounting) for which a Balance sheet and profit and loss account can be drawn.

[Former Member]

ABD

Company Code:

The smallest organizational unit of Financial Accounting for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.

This includes recording of all relevant transactions and generating all supporting documents required for financial statements.

Company:

The smallest organizational unit for which individual financial statements can be drawn up according to the relevant commercial law.

A company can consist of one or more company codes.

All company codes within a company must use the same transaction chart of accounts and the same fiscal year breakdown. The company code currencies can be different.

A company has one local currency in which its transaction figures are recorded.

Also check these

Company:

Definition

The smallest organizational unit for which individual financial statements are created according to the relevant legal requirements. A company can include one or more company codes.

The definition of the company organizational unit is optional.

Use

A company’s financial statements also form the basis of consolidated financial statements.

All of the company codes within a company must use the same chart of accounts and fiscal year. However, each company code can have a different local currency.

To define a company, choose the following in Customizing for the Enterprise Structure: Definition ® Financial Accounting ® Define Company

You must assign your companies to your company codes. To do so, choose Assignment ® Financial Accounting ® Assign Company Code to Company in Customizing for the Enterprise Structure.

Company Code:

Use

The company code is the central organizational unit of external accounting within the SAP System. You must define at least one company code before implementing the Financial Accounting component. The business transactions relevant for Financial Accounting are entered, saved, and evaluated at company code level.

You usually create a legally independent company in the SAP System with one company code. However, you can also define a company code according to other criteria. A company code could also be a separate, but not independent, commercial place of work. This is necessary for example, if the place of work is actually situated in a different country and evaluations therefore have to be carried out in the appropriate national currency and in accordance with other tax and legal specifications.

If you want to manage the accounting for several independent companies simultaneously, you can set up several company codes in one client. You must set up at least one company code in each client.

To define a company code, choose the following in Customizing for the Enterprise Structure: Definition ® Financial Accounting ® Define, Copy, Delete, Check Company Codes.

Hope this helps

Thnaks

Sat