CREATION OF COMPANY CODE

Creation of company code

A company code is an individual organizational unit which we can draw individual financial statement i.e. profit & loss accounts and balance sheets for external reporting.

It is denoted by maximum 4 characters (numerical/alphabets/ alpha-numerical).

It is a legal entity; creation of company code is mandatory.

All settings will be done at company code level and all postings will be done at company code level.

[T Code OX02]
PATH
 
STEP 1  
Enter SPRO
           

STEP 2  

Select SAP Reference IMG

     

STEP 3

Select Enterprise structure

STEP 4

 Enterprise structure >> Definition >>Financial accounting >>edit, copy, delete,

check company code>>

 *Double click on edit company code data

 

STEP 5

Select new entries button

STEP 6

Enter details 

Company code

Company Name

In the Additional Data 

City 

Country for the Company

Local Currency

Default Language

 

Once you complete the data select save or address details the same screen

will appear 

STEP 7

Enter Address Details for the Company 

Name Section -Title and Company Name

Search Term section Enter Search term 1 and 2

Street Address section enter street, postal code, city, country

PO Box Address section Enter PO Box and Postal Code

In communication section enter appropriate details

 

After completion of detail information of the company

Press enter

Press save button and save in TR

Questions related to:

1. What is a Company Code?

Company Code is a legal entity for which financial statements that is Profit and Loss account and Balance Sheets are generated for external reporting. All setting and postings are done at company code level. Plants are assigned to the company code level and Purchasing organization is assigned to the company code.

2. Is creation of company code is mandatory?
Yes, creation of company code is mandatory, because it represents its own individual legal entity for which it carries financial statements and reporting.

3. How many characters are available to create company code by SAP?
There are 4 characters available for creating company code and it is alphanumeric in nature. We can use numerical, alphabets or alphanumerical.