Thecompany code is a financial accounting unit.
The company code is the organizational unit that allows you to structure your enterprise from a financial accounting perspective.
You need to define the following for each company code:
- the accounts to which values that affect the company code are posted.
- Any specific rules that control business processes such as payment transactions or correspondence.
A company code should be depicted from a tax law, commercial or other financial accounting standpoint. It usually corresponds to a legally independent company.
A company code can also depict legally independent business premises located abroad if there are specific reporting requirements for these premises, like for example reports using the appropriate domestic currency.
A company code possesses specific information that is important for accounting purposes. For example, each CC is assigned to exactly one country; this determines the country-specific tax regulations used. For example, each CC is assigned to exactly one country; this determines the country-specific tax regulations used.
For each company code, you define exactly one operative chart of accounts, which can be used for accounting within that company code. In addition, you can define a country-specific chart of accounts, which is structured in accordance with the legal requirements of the country in question. You can also use a group chart of accounts for consolidation purposes.
Each company code has exactly one domestic currency, in which you create the balance sheet. You can define up to two additional currency roles, for example global company currency. This means that you can disclose transaction figures for the company code not only in the transaction currency or in the domestic currency for that company code, but also in up to two additional currencies.
The business year is split into posting periods according to pre-defined rules.
For more information, see:Company Code: Notes Company code: Integration (Organizational Units)