Definition
The smallest organizational unit for which individual financial statements are created according to the relevant legal requirements. A company can include one or more company codes.
The definition of the company organizational unit is optional.
Use
A company’s financial statements also form the basis of consolidated financial statements.
All of the company codes within a company must use the same chart of accounts and fiscal year. However, each company code can have a different local currency.
To define a company, choose the following in Customizing for the Enterprise Structure: Definition ® Financial Accounting ®
Define CompanyYou must assign your companies to your company codes. To do so, choose Assignment ® Financial Accounting ®
Assign Company Code to Company in Customizing for the Enterprise Structure.