Company codes are used to represent legal entities in business area scenarios. You need to define the following individually for each company code:

• Reports for external rendering of accounts (financial statement, profit and loss statement, tax reports, and so on) are prepared separately for each company code
• Asset accounting, open item accounting, dunning procedures, bank accounting

Each of the three legal entities – Sapo Ireland, Sapo Germany, and Sapo Czech Republic – is portrayed as a separate company code:

For more information on mapping legal entities in the company code scenario, see also: