Summary -

In this topic, we described about the Define Company Code process along with technical information.

Company Code is a smallest organizational unit used to represent the company for external accounting. A company can include either one or more company codes. The company business transactions for Financial Accounting are entered, saved and evaluated at company code level.

Independent company can be created with one company code in the SAP System. The company code (organizational unit) definition is optional. At least one company code must be defined before implementing the Financial Accounting component.

A company code could be separate, but not independent, commercial place of work. To manage the accounting for several independent companies simultaneously, several company codes can set up in one client. At least one company code must set up in each client.

Creating Company Code is a two Step process -

  1. Create Company Code
  2. Assign Company Code to Company - Will discuss in next chapter

Define Company Code: -

Below process is to define company code TSTC (Test Company Code).

Step-1: Enter the transaction code OX02 in the SAP command field and click Enter to continue.

Define Company Code

(OR)

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

Define Company Code

Click on SAP Reference IMG.

Define Company Code

Expand SAP Customizing Implementation Guide → Enterprise Structure → Definition → Financial Accounting → Edit, Copy, Delete, Check Company Code. Click on Execute.

Define Company Code

Step-2: In the next screen, select activity - Edit Company Code Data and click on Choose.

Define Company Code

Note: - This step appears only when defining the company code using the navigation path.

Step-3: Click on New Entries to create new company code.

Define Company Code

Step-4: Enter the below details.

  • Company Code - Enter Unique Company Code of four digits of alphanumeric.
  • Company Name - Specify the name of the company.

Additional Data: -

  • City - Specify the company located city name.
  • Country – Specify the company located country code.
  • Currency – Specify the company local currency.
  • Language - Specify the company language.
Define Company Code

Step-5: Once the details entered, click on Address button on the same screen.

Define Company Code

Step-6: Enter the company address details in the below screen.

  • Name Section (Title and Company Name)
  • Search Term Section (Search term 1 and 2)
  • Street Address Section (street, postal code, city, country)
  • P O Box Address Section (PO Box and Postal Code)
  • Communication Section (Language, Telephone, Extension, Mobile phone, Fax, Extension, E-Mail, Standard comm. Method and comments)
Define Company Code

Click on right mark to procced.

Step-7: Click on Save button to save the new company code.

Define Company Code

Step-8: It prompt for the Change Request. Create/Select the change request and Click on right mark to proceed.

Define Company Code

Step-9: Status bar displays the below message once the company code created successfully.

Define Company Code

Technical Information: -

  • Transaction Code: - OX02
  • Navigation path: - SPRO → SAP Reference IMG → SAP Customizing Implementation Guide → Enterprise Structure → Definition → Financial Accounting → Edit, Copy, Delete, Check Company Code
  • Database Table: - T880 (Global company data)