Smallest organizational unit of external accounting for which a complete, self-contained set of accounts can be created. This includes the entry of all transactions that must be postedand the creation of all items for legal individual financial statements, such as the balance sheet and the profit and loss statement.
The definition of the company code organizational unit isobligatory.
The company code is the central organizational unit of external accounting within the SAP System. You must define at least one company code before implementing the Financial Accountingcomponent. The business transactions relevant for Financial Accounting are entered, saved, and evaluated at company code level.
You usually create a legally independent company in the SAP System with onecompany code. However, you can also define a company code according to other criteria. A company code could also be a separate, but not independent, commercial place of work. This is necessary forexample, if the place of work is actually situated in a different country and evaluations therefore have to be carried out in the appropriate national currency and in accordance with other tax and legalspecifications.
If you want to manage the accounting for several independent companies simultaneously, you can set up several company codes in one client. You must set up at least one company codein each client.
To define a company code, choose the following in Customizing for the Enterprise Structure: Definition Financial Accounting Define, Copy, Delete, Check Company Codes.Integration
If you use other components of the SAP System, you have to make assignments between the company code as the central organizational unit of Financial Accounting, and the organizational units of theother components. This is necessary to ensure that data can be transferred between the components.
The assignment between the controlling area and the company code is particularly important. The...