A company code is an independent accounting unit that represents an independent company in the legal sense. It is the central organizational element in Financial Accounting.

In the retail sector, company codes can be used at distribution chain level or even at the level of individual stores. For this reason, goods movements (such as stock transfers) between different company codes are common in SAP Retail.

Various assignments between a company code and other organizational units are possible:

A purchasing organization can be assigned to a company code. In this case, the purchasing organization can only order for sites within this company code.

A valuation area is the organizational unit subject to inventory management on a value basis in the SAP System. In SAP Retail, the valuation area must correspond to a site.

You assign a company code as an attribute to the valuation area that is already allocated to a site either in the site maintenance or in Customizing.

Each sales organization must be assigned to a company code in Customizing. This assignment forms the link between Sales and Distribution and Accounts Receivable Accounting.