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Company code


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

Former Member


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.


Ferry Lianto

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