Definition

The company code is an organizational unit used in accounting. It is used to structure the business organization from a financial accounting perspective.

Use

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.

Example

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.