New company code

[Former Member]

Hello All,

If We have created a new subsidiary company and wish to maintain books of accounts of this new company in sap.

How can we map this requirement.

Do we need to create a seperate company code or is there any alternative to this.

Your Inputs will really be helpful...

Thanks!!

[former_member1224230 · Accepted solution]

If this is a separate legal entity company code is a must.

Piotr.

[Former Member]

Hi,

If your subsidiary company is a legal entity, you have to go for a separate company code. There are statutory obligations for legal entities.

If the subsidiary company is not a legal entity, you can keep the subsidiary company as a profit center and you can get all the account details including profit and loss at profit center level. But you can not get trail balance in standard. By customization report you can get trial balance.

There is another option. You can go for Business area concept if your subsidiary company is not a legal entity. But the Business area concept is not advisable. Tax account is not splited business area wise. Every month we have to go for business area clearance because the tax accounts are always at company code levels. Tcode F.5E and F.5D.

Hope this information will be useful to you.

Regards,

K Bharathi

[Former Member]

Hi,

If your subsidiary company is a legal entity, you have to go for a separate company code. There are statutory obligations for legal entities.

If the subsidiary company is not a legal entity, you can keep the subsidiary company as a profit center and you can get all the account details including profit and loss at profit center level. But you can not get trail balance in standard. By customization report you can get trial balance.

There is another option. You can go for Business area concept if your subsidiary company is not a legal entity. But the Business area concept is not advisable. Tax account is not splited business area wise. Every month we have to go for business area clearance because the tax accounts are always at company code levels. Tcode F.5E and F.5D.

Hope this information will be useful to you.

Regards,

K Bharathi

[ajitsingh6]

Dear,

I dont think it needed.

U can just create a new SALES ORG and assign it to the existing company code.

Regards

AJIT K SINGH

HAPPY TO HELP U