SAP Company Code
Definition
The company code is an organizational unit used in accounting. It is
used to structure the business organization from a financial accounting
perspective. The company code represents a legal entity for financial reporting
purposes. This means that in all the financial transactions and master data
definitions the company code must be identified.
Further information about Company Code can be access on following links:
Importance
Company Code plays a very vital role in SAP Finance. It is the backbone of all the accounting. It works as the central organisational unit in the whole accounting.
Implementation Consideration
SAP has provided country specific templates for using in creating Company Codes. Using T Code EC01 the templates can be used to create new Company Codes.
Tips
The Company Code is four digit number. Please use all the four digits i.e. use numbering like below:
1000 Company code A in India
1100 Company Code B in India
2000 Company code C in UK
2100 Company Code D in UK
3000 Company Code E in USA
3100 Company Code F in USA
The numbering should be decided after considering the facts like geographical location etc. In the above example I have use series of number starting with 1 for all company codes in India, 2 for all company codes in UK and 3 for company codes in US.
Happy Company Coding ;)
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