Company Code.

Fastest way to create a SAP Company Code

SAP recommends that you used EC01 to copy an existing company code to a new one.

This has the advantage that you also copy the existing company code-specific parameters.

If necessary, you can then change certain data in the relevant application.

This is much less time-consuming than creating a new company code.

Following are the steps to create a new company code:-

Use EC01 to copy an existing company code. This will ensure that you will not missed out any customizing settings.

Tcode is OX02 or Goto tcode SPRO
SPRO -> SAP Ref IMG -> Enterprise Structure-> Definition -> Financial Accounting -> Edit,Copy, Delete, Check Company code

OKKP – Assign company code to the controlling area
OBY6 – Define company code global parameters
OB62 – Assign company code to chart of accounts

Then check the following if needed, there may be other areas depending on your needs:

OBA4 – FI Tolerance Group for Users
FBZP – Maintain Payment program
OBYA – Inter Company code clearing if being used

Meaning and Creation of Company codes

Which is the best method to create a company code.
– copy an existing company code or copying from country templates.

What is the process involved in copying from a country template.

For configuring SAP, generally three steps are required

1) create company name and address
2) creation of company code
3) currency and country setting
4) Assign company code to company

In same organisation i.e. in one company more than two company codes are maintaing, then its better to copy from other company code from ec01, later on you can customised/change specific settings according to client requirements.

If your want seperate setting in your own company code, that time its better to configure by creation rather than copy

In above that is your choice and need for reqirement.

Otherwise you can upload certain data by creating company code.

Now my doubt is What is the Difference between Company and Company Code?

Company is the smallest organizational unit for which individual financial statement can be drawn according to the relevant commercial law.

Company code is the smallest organizational unit for which complete, self-contained set of accounts can be drawn up for external reporting purposes

Company – A company is a legal entity or a organisation which is to carry out a business and under a company you have lot of sub companies.

For Example
Tata is a company
TCS,Tata Power,Tata Steel, is a company code under a company TATA
Under Company code you have business area associated with it where the business areas may be scattered in different parts of the world where you can have reporting done for different business area or you can also call it as Profit Centre.

A company is the Group of company and company code is the all the companies for which u want seperate books of accounts. Company codes are assigned to company for consolidation purpose.

example :- reliance is the company

and RIL,Reliance infocomm,Reliance Petrochem etc are the company codes.

All these are assigned to reliance company for consolidation purpose.

Along with that technical difference is COMPANY cosists of 6 digit alphanumeric key where as COMPANY CODE cosists of 4 digit alphanumeric key.

Company means group company for example : Tata Group

Company code means one of the company of its group ex:
Tata Chemicals, TCS, Tata Steels etc.

Company Code

Company code is representative of a stand-alone legal entity that requires its own set of accounting records for reporting purposes. For detailed description of company codes with examples click here. For SPRO path for Company codes, Click here.

Enterprise Structure >> Maintain Structure >> definition >> Financial Accounting >> Define, Copy, delete, Check Company Code

Transaction Code: OX02

Enter the Company code details such as description, country and address details. All Address details are stored in table SADR. SAP recommends that all the address details are not transported – rather they are to be maintained by hand in the production client.

Company Code: Enter the four-digit alphanumeric identifier (normally number from 1000 upwards are used)

For Saks Apparel, the company has decided to all numeric company codes. In the contents post we assumed 4 legal entities – Saks Woolen Inc, Saks knitwear, Saks Textile and Saks International. Saks International is based on Mexico. All 3 others are based in USA.

Very Good Pdf. for confi.


About Manoj Kanwar Rathore

I am Manoj Kanwar Rathore. I am a SAP FICO Consultant, Chartered Accountant, certified IFRS and certified SOX professional. I have passion to work on SAP ERP, reading books and learning/sharing peers/my knowledge.

Posted on January 31, 2011, in SAP FI. Bookmark the permalink. 1 Comment.

  1. Rajneesh Srivastava

    When I use T code EC01 to create a new company. I get the following MSG as number range cannot be copied. What is the reason behind? Suppose i start working in the T Code MM 01 the moment i put plant the comment i get is company code does not exist or it has not been maintained. What need i do to get the same in the working order?

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