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company and company code

Hi friends

Can any one tell me the usefullness and functionalities of a company and company code.



Former Member
Former Member replied


Company can be considered as the higher level entity. Take the example of Nestle, they have operations all around the world. So the company (client)is Nestle

In eache country, the legal formalities, accounting structure, taxation will be different. So we need to classify it into different company codes. so, Nesle india will be a company code, nesle UAE will be another.. so on

I think you are clear now.


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