Define And Assign Company Code

What is company code?

The company code is an organizational unit used in accounting. It is used to structure the business organization from a financial accounting perspective.
 

What are the steps to configure company code in SAP?

Configure Steps:

1) Create your company codes based on the reference (company code 0001) delivered with the standard system. SAP recommends using the function "Copy Company Code" to create your company codes.

2) Go to the activity "Edit Company Code Data" and change the name, description, address, and currency. Maintain the company code data that has not been copied.
 

You can define your company codes by specifying the following information:

  • Company code key
You can select a four-character alpha-numeric key as the company code key. This key identifies the company code and must be entered when posting business transactions or creating company code-specific master data, for example.
  • Company code name
  • Address data
The address data is necessary for correspondence and is printed on reports, such as the advance return for tax on sales/purchases.
  • Country currency 
Your accounts must be managed in the national currency. This currency is also known as the local currency or the company code currency. Amounts that are posted in foreign currency are translated into local currency.
  • Country key
The country key specifies which country is to be seen as the home country; all other countries are interpreted as "abroad". This is significant for business and payment transactions because different forms are used for foreign payment transactions. This setting also enables you to use different address formatting for foreign correspondence.
  • Language key
The system uses the language key to determine text automatically in the language of the relevant country. This is necessary when creating checks, for example.
 

To Define Company Code

Path -> SPRO -> SAP Reference IMG -> Enterprise Structure -> Definition -> Financial Accounting -> Edit, Copy, Delete, Check Company Code -> Edit Company Code Data

Select New entries

Company Code: 0506

Company Name: Global Industries Limited

Country: India

Currency: INR

Language: IN

Then Save screen.
 
 

To Assign Company Code To Company

Path -> SPRO -> SAP Reference IMG -> Enterprise Structure -> Assignment > Financial Accounting > Assign Company Code to Company

Go to position > type 0506 > type company GILH.

Save

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