Company Code

Definition

The smallest organizational unit for which a complete self-contained set of accounts can be drawn up for external reporting. This involves recording all relevant transactions and generating all supporting documents for financial statements, such as balance sheets and profit and loss statements.

Use

You can set up more than one company code for each client . This enables you to manage the accounts for more than one independent company at the same time. However, you need to set up at least one company code.

A legally independent company is normally only represented by one company code in the SAP system. You can, however, also use a company code to represent an operation that is not independent according to trade law. This is required, for example, if this operation is in another country and must use the corresponding country currency and must meet the local tax requirements.

In financial accounting, business transactions are always entered on the company code level and processed further. The costs are also managed on the company code level. By using internal organizational structures, it is possible to divide this up even further. All company-specific specifications are made on the company code level.