In company code scenarios, each intersection of a strategic business unit with a legally-independent company is represented by a company code. Strategic business units that have activities in several legally-independent companies have several company codes.

The following graphic displays part of the organizational structure of an R/3 System for an enterprise that consists of three legally-independent companies and one strategic business unit.

If an enterprise has several strategic business units, a company code is set up for each intersection of a strategic business unit with a legally-independent company.

The R/3 System draws up business area balance sheets by consolidating figures vertically and balance sheets for legally independent companies by consolidating figures horizontally.