What is a company code in SAP?

What is a company code  in SAP?
Are you still learning SAP terminology? We decided to make your job easier and familiarize you with the concepts related to the structure and operation of the system. This will make it easier for you to use the it. One of the most important terms is company code. What is it? How does it affect data organization? Read on to learn more and see the examples below.

Company code is an independent accounting unit, the smallest organizational element for which an independent chart of accounts can be created.

Example: company within a corporate group

Designation: four-character, alphanumeric key

A company may consist of many independent branches (e.g. in different countries). These branches are defined in the system as company codes with a single joint chart of accounts and a separate set of profit and loss balances, which makes it possible to prepare separate financial statements and thus monitor the finances of each company code from the “parent” company.

This element of the structure is created at the level of the FI module – related to finance:

  • A company code must be assigned to operational charts of accounts in order for an accounting number to appear for it
  • A chart of accounts is a list of G/L accounts used by one or more company codes

Company code settings:

  • The G/L account stores information specific to a company code (example: currency account)
  • Account groups are used to organize and manage large numbers of accounts
  • When creating a new account, we do it in the context of a specific group
  • Accounts in the same group have similar business functions
  • Account groups control the account number range
  • They are responsible for the status of account fields

Company code master data:

  • SPRO Financial Accounting (new) Basic Settings
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Now that you know what a company code is in the SAP system and how it affects the organizational structure, you can manage it more effectively. We hope our tips were helpful. However, you may still have questions about this new term or other issues related to the operation of the system. We encourage you to contact our consultant, who will provide appropriate explanations and answer any questions you may have.



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