Company Codes and Companies 

Definition

A company code is the smallest organizational unit for which a complete, self-contained set of accounts can be drawn up.

A company is the smallest organizational unit for which individual financial statements can be drawn up according to the relevant commercial law. A company can contain one or more company codes.

You cannot use the prefix SAP at the beginning of your company name. You can use the company name 001SAP, but not SAP001.

If your system currently contains companies defined with the prefix SAP, contact your SAP consultant.

Use

Local company codes

You define the four-character company codes in Customizing for Financial Accounting (FI). In doing so, you can configure your system such that a company code posts directly to a local ledger. However, you can also assign the company code to a company, so that the company code also posts to a global ledger.

For more information see the Implementation Guide for the Enterprise Structure under Definition ® Financial Accounting ® Edit, Copy, Delete, Check Company Code.

Global companies

You define the six-character companies in Customizing for the Special Purpose Ledger. When you do this, you can define that information from the company codes assigned is to be transferred on a 1:1 basis.

Only companies are used in the special purpose ledgers. You therefore have to assign all company codes that you want to use in your ledgers to companies.

To set up a company in the FI-SL system, proceed as follows:

...

        1.      In Customizing for the Special Purpose Ledger, choose Master Data ® Maintain Companies.

        2.      Enter a six-character name for the company.

        3.      If necessary, assign a four-character company code to your company.

        4.      Assign the company to a global ledger.

Defining Several Companies

The six-character company name is a subdivision within a client and is usually defined as a legally independent unit. You can create or edit any number of companies within an FI-SL client.

Normally, the company codes in other SAP areas are assigned to the companies on a 1:1 basis: You can assign one global company to each local company code. If there is no transaction data in the system, you can change the assignment of local company codes to a global company.