What is a Company and Company Code

Company

The smallest unit for which the financial statements are created according to the legal provisions requirements. An company may include one or more codes. A company’s financial statements also form the basis consolidated financial statements. All codes of the company within a company must use the same chart of accounts and exercise. However, each company code may have a different local currency.

Company Code

The smallest organizational unit of external accounting for which a complete, autonomous, accounts can be created. This includes the entry of all transactions that must be posted and the creation of all the legal individual financial statements such as balance sheet and profit and loss account.

If you like this post, you may as well like these too:

1. How to Configure a New Company Code This document describes how a new company code is added to an existing SAP R/3 environment. Here the company code is not created from scratch, but as a copy from...
2. Important Global Settings For a Company Code General data: Company Code Company Name City Address Currency Country Language Global data: Chart of Accounts Credit Control Area Fiscal Year Variant Field Status Variant Posting Period Variant...
3. SAP AG – The Most Admired Company FORTUNE magazine has once again named SAP AG NYSE: SAP, the world’s leading provider of business software solutions, in the publication’s rankings of “America’s Most Admired Companies.” Placing fifth in...
4. Transaction Code to Access Other Transaction Code with Values Many times in SAP, you may come across situations where in the users wants to have a separate transaction codes for some of the tables which can be easily maintained...