Scenario for different company code

[Former Member]

Hi,

I want to know that for which scenario we use different company code for our plant.

If we have more than one plant and for that we define different company code for each plant,then what will be the advantage for this.

Regards

[former_member204513]

Hi Prem,

The Company codes are takes place at what level the company submitting their accounts to the government autherities, so If your company submitting account detailes at plant level that means two different balance sheets, you need to have two Company codes in SAP.

I think It will clear you ,

Murali.

[Former Member]

>

> Hi,

>

> I want to know that for which scenario we use different company code for our plant.

> If we have more than one plant and for that we define different company code for each plant,then what will be the advantage for this.

>

> Regards

Hi Prem,

As the previous post says it is not a logistics decision to go for different company codes but a legal concern.

However for intercompany stock transport we use two different plants belonging to two different company codes. Say you dont have stock in one plant but have in another plant with a different company code (a subsidiary of your company or vice versa) then you can use these to plants.

Not sure if answered anything even remotely close to what you wanted.

Post if you require anything specific.

Thanks & regards

Abhishek swarup

[Former Member]

Hi,

You may be aware that deciding the company code is not a logistics issue. Company code is a legal entity. All external legal reporting such as balance sheet / profit and Loss are done at company code level. Hence even if plants are located in geographically different regions, we need not create different company codes unless from an FI perspective it is required.

Exception is plants located in a foreign country. In this case we need a diiferent company code as taxation is linked to plant & country.

Muraleedharan.R

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