What is Company Code in SAP?

              A company is an organizational unit in accounting that represents a business organization in a particular country. Company code represents an independent accounting unit. In other words, it is a legal entity responsible for statutory reporting. For example,IBM is a company, but IBM consulting services is a company code.

The information that a company code can provide us include:

1)Company address
2)Chart of accounts
3)Balance Sheet currency
4)Fiscal year variant
5)Controlling area
6)Business area

        SAP recommends that one use EC01 to copy an existing company code to a new one. This has the advantage that you also copy the existing company code-specific parameters. If necessary, you can then change certain data in the relevant application. This is much less time-consuming than creating a new company code.



Other transactions that could come handy in case of company code creation are:

OKKP - Assign company code to the controlling area

OBY6 - Define company code global parameters

OB62 - Assign company code to chart of accounts

OBA4 - FI Tolerance Group for Users

FBZP - Maintain Payment program

OBYA - Inter Company code clearing if being used

3 comments:

  1. I was actually confused about this term but after reading this information all my doubts have been cleared. I appreciate you for the way you have explained the meaning of company code using an example.
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