Definition

The smallest organizational unit for which individual financial statements are created according to the relevant legal requirements. A company can include one or more company codes.

The definition of the company organizational unit is optional .

Use

A company’s financial statements also form the basis of consolidated financial statements.

All of the company codes within a company must use the same chart of accounts and fiscal year. However, each company code can have a different local currency.

To define a company, choose the following in Customizing for the  Enterprise Structure : Definition Financial Accounting Define Company

You must assign your companies to your company codes. To do so, choose  Assignment Financial Accounting Assign Company Code to Company in Customizing for the Enterprise Structure .