The company code is an organizational unit used in accounting. It is used to structure the business organization from a financial accounting perspective.
The business transactions relevant for financial accounting are entered and saved on company code level. And financial reports (for example, income statements or balance sheets) are also created based on company codes.
Have a look at the following table to see how company codes can be distributed in a corporate group:
Type of Company |
Company Code |
|---|---|
Parent company |
1000 |
Subsidiary in country A |
2000 |
Subsidiary in country B |
3000 |
Subsidiary in country C |
4000 |
For more information, see Company Code.