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Arthur WangWhat is a ‘Company’?
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A ‘Company’ in SAP is represented by a 5-character alphanumeric code and usually represents the enterprise or the group company. A Company can include one or more Company Codes. The creation of a Company, in SAP, is optional.
What is a ‘Company Code,’ and how is this different from a ‘Company’?
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A ‘Company Code’ in SAP is the smallest organizational unit for which you can draw individual Financial Statements (Balance Sheet and Profit & Loss Account) for your external statutory reporting. It is denoted by a 4-character alphanumeric code. The creation of a Company Code is mandatory; you need to have at least one Company Code defined in the system, for implementing FI.