Organizational Structure: Company Code 

Definition

A company code is an independent accounting unit that represents an independent company in the legal sense. It is the central organizational element in Financial Accounting.

Use

In the retail sector, company codes can be used at distribution chain level or even at the level of individual stores. For this reason, goods movements (such as stock transfers) between different company codes are common in SAP Retail.

Integration

Various assignments between a company code and other organizational units are possible:

A purchasing organization can be assigned to a company code. In this case, the purchasing organization can only order for sites within this company code.

The valuation area is the organizational unit of the R/3 system via which stock is managed on a value basis. The valuation area can be a site but it can also be a company code. In SAP Retail it is always assumed that valuation area and site are identical.

A site (or more precisely the valuation area which belongs to a site) is assigned a company code as an attribute in site maintenance or in Customizing.

Each sales organization must be assigned to a company code in Customizing. This assignment forms the link between Sales and Distribution and Accounts Receivable Accounting.