Company is the smallest organizational unit. The individual financial statements are created according to the relevant legal requirements for the company. A company can include either one or more company codes. The company (organizational unit) definition is optional.

All 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. The fiscal year is the twelve months period set by a company as a financial year.

Process to Define a Company: -

Below process is to define company TESTC (Test Company).

Step-1: Enter the transaction code OX15 in the SAP command field and click Enter to continue.

(OR)

Enter the transaction code SPRO in the SAP command field and click Enter to continue.

Click on SAP Reference IMG.

Expand SAP Customizing implementation guide → Enterprise Structure → Definition → Finance Accounting → Define Company. Click on Execute.

Step-2: Below window will be opened. Click on New Entries.

Step-3: Enter the below details in the screen opened.

• Company - Unique Company Id for the Company.
• Company Name – Primary Name of the new Company.
• Name of Company 2 – If company has secondary name, update in this field.

Detailed information: -

• Street – Company located street.
• PO Box -- Specify the Post box number if any.
• Postal Code – Specify the company located area postal code.
• City – Specify the company located city.
• Country -- The company established country code.
• Language – Language code for the Company.
• Currency – Specify the currency for the Company.

Step-4: Once the details entered, click on Save button or press Ctrl + S to save the company.

Step-5: It prompt to create the customizing request. Click on Create to continue.

Step-6: Create/Select the change request and Click on right mark to proceed.

Step-7: Status bar displays the below message once the company created successfully.

Technical Information: -

• Transaction Code: - OX15
• Navigation path: - SPRO → SAP Reference IMG → SAP Customizing implementation guide → Enterprise Structure → Definition → Finance Accounting → Define Company
• Database Table: - T880 (Global company data)