A credit control area can establish and monitor credit limits for customers assigned to one of several company codes.

A company code is assigned to exactly one credit control area, which monitors its credit limits.

An FM area can include several company codes that are treated as a unit for the purposes of cash budget management and Funds Management. A company code is assigned to exactly one FM area.

You can assign a company code to exactly one company. A company can include one or more company codes.

You can assign a company code to exactly one controlling area, the area in which cost accounting is carried out for that company code.

You can assign one or more company codes to a controlling area, if these company codes are included in cost accounting within that controlling area.

For G/L accounting, you may only use the same posting periods for company codes as you use for the controlling area to which they are assigned.

Several cost centers can be assigned to a company code. A cost center is assigned to exactly one company code.

This ensures that cost center values can be attributed unambiguously to one single company code, in cases where the controlling area includes several company codes.

For more information on cost accounting for several controlling areas see Online Service System note 0107293.

In the company code you can enter the business transactions of several purchasing organizations for accounting purposes.

You can assign each purchasing organization to one or several company codes, under which the relevant business transactions are entered.

In the company code you can enter the business transactions of several sales organizations for accounting purposes.

Each sales organization is assigned to exactly one company code, under which the relevant business transactions are entered.

One company code can have several plants assigned to it. A plant is assigned to exactly one company code.

Each company code can have several material valuation areas assigned to it; material stock can be evaluated independently in each of these material valuation areas. Each material valuation area is assigned to exactly one company code, in which the material stock values can be displayed in G/L accounting. Each material valuation area can have several plants assigned to it; material stock values can be evaluated independently in each material valuation area. Each plant is assigned to exactly one material valuation area for evaluation of material stock values.

This is simply a logical link; there is no direct assignment in enterprise structure Customizing. There can be several business areas within one company code. Business areas can be used to create cross-company reports.

For enterprise consolidation purposes, profit centers are assigned to the company codes to which they are posted. There can be several profit centers within one company code. Profit centers can be used to create cross-company reports.