A company is a business organization or group of businesses whose individual financial statements are prepared in accordance with the applicable commercial law in that country. The company’s financial transactions are recorded in the local currency. A five-character alphanumeric key identifies a company, known as Company Code. Company codes are a component of your organization’s financial transactions, which are viewed at the company code level. Once a company code has been defined in configuration with all of the required settings, other company codes that are later created should be copied from the existing company code and then changes can be made as per business requirements. This tutorial will teach you how to create a company code in SAP.

1. Steps toSetupCompany
&AssignCompanyCode
inSAP FICO

2. A company is a business organization or group of businesses whose
individual financial statements are prepared in accordance with the
applicable commercial law in that country.The company’s financial
transactions are recorded in the local currency.
A five-character alphanumeric key identifies a company, known as
CompanyCode. Company codes are a component of your
organization’s financial transactions, which are viewed at the
company code level. Once a company code has been defined in
configuration with all of the required settings, other company codes
that are later created should be copied from the existing company
code and then changes can be made as per business requirements.
This tutorial will teach you how to create a company code in SAP.

3. A company can have multiple company codes and operations in
different locations, but they must all be part of the same business
unit.
This article will guide you through the process of creating a new
company and assigning the company code in SAP FICO.

4. Creating A Company

5. About Company

6. A company is an organizational unit for which a separate set of
financial statements can be prepared based on business rules. A
company can be made up of one or more company codes. Local
currencies are used by a company to keep track of its transactions.
All of a company’s company codes must use the same Chart of
Accounts and FiscalYear for transactions. SAP does not compel you
to form a corporation.

7. Here areThe KeyThingsYou Need
To Know

8. You can prepare financial statements that comply with the laws of
the country in which the business is located.
 A company can be assigned one or more company codes.
 It is a SAP organizational unit that can be selected or deselected.
 If a company has more than one company code, they should all
use the same chart of accounts.

9. Creation Of A Company Code

10. SAP IMG Path: SPRO > Implementation Guide for R/3 Customizing >
Enterprise Structure > Definition > FinancialAccounting > Define
Company
OX15 is the code for “Define Company in SAP.”
For making a new company, enter the following information.

11. Define CompanyCode
Step #1 EnterTransaction code SPRO in the command field
Step #2 In the next screen, Select SAP reference IMG
Step #3 In the next screen, Display IMG follow the menu path
SAP Customizing Implementation Guide -> Enterprise Structure -
>Definition->FinancialAccounting->Edit,Copy, Delete, Check
Company Code

12. Step #4 In the next screen, select activity – Edit Company Code
Data
In the ChangeView Company code screen
Step #5 Select New Entries
Step #6 In the Next Screen, Enter the Following Details

13.  Enter your Unique Company Code Number
 Enter Company Name
 In the Additional Data section Enter City
 Enter Country for the Company
 Enter Local Currency
 Enter Default Language

14. Step #7 Click the Address Details button on the same screen
Step #8 Enter Address Details for the Company.This will appear in
print forms
 In the Name Section EnterTitle and Company Name
 In the SearchTerm section, Enter Search terms 1 and 2
 In the Street Address section, enter street, postal code, city,
country
 In the P O BoxAddress section, Enter PO Box and Postal Code
 In Communication Section, Enter appropriate details

15. Step #9 After Completing this information, Press Save How to
Create a Company Code in SAP & Assign Company Code and Enter
your Change Request number.
You have successfully created a new Company code.

16. Assign Company Code to Company

17. After successfully creating a company code and a company in SAP,
you must assign the company code to the SAP system. In SAP, the
link between company and company code is established by
assigning a company code to a company.
You can assign the company code by using either the navigation
method or the transaction code.
 Navigation: – SPRO – IMG – Enterprise Structure – Assignment –
FinancialAccounting – Assign company code to company
 Transaction code: – OX16

18. Step #1 EnterTransaction code “OX16” in the SAP command field
and press enter to continue.
Step #2 On change view “Assign company code -> Company”:
Overview screen, click on the position button and give your
company code key. Now your company code displays in the window.
Step #3 Now update your company key “SKRT” in the given field.

19. Step #4 After the assignment of the company code to the company,
click on the save button and save the configured data.
We have successfully assigned company code “SK01” to company
code “SKRT” in SAP systems.
Now that you’ve learned how to create a company code in SAP, why
not look into other free lessons to further your understanding of
FinancialAccounting in SAP?You can take a SAP course in
Ahmedabad with us and hone your skills in SAP.
Originally Published: https://s20.in/blog/setup-company-assign-
company-code-sap-fico/

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