DEFINE A COMPANY

DEFINE A COMPANY

A company is an artificial person formed by a group of individuals performing for a specific common purpose. it may be either private or public.

In SAP FI

It provides consolidated financial statements based on individual company's financial statements which are used for internal and external reporting purposes, within or outside the country wherever it is incorporated according to its legal requirements in a particular country. A company can include one or more company code.

Basically "Company " is a parent company and company code are subsidiaries.

[T Code - OX15]

PATH

STEP 1

 Enter SPRO in command field                 * (SPRO- SAP Project Reference Object)
*All consultants do settings at (SPRO). Based on settings entries will be posted.

 

STEP 2  

Select SAP Reference IMG                                 *[IMG - Implementation guide]

STEP 3

 Select SAP customizing implementation guide

 STEP 4

 Select Enterprise structure

 

STEP 5

Enterprise structure >> Definition >>Financial accounting >> Define company

STEP 6

Select New entries button

 

STEP 7

In the next Screen enter the Company's Details:
1. Use a Company Id for the Company within your corporate group
Enter the Company's Name
NOTE 

*1. A company or group in SAP is represented by a maximum 6 characters (numeric /alphabet / alpha- numeric) code and usually represents the enterprise or the group.

*2. In SAP creation of a company is optional.
  2. In the Detailed Information
Street
PO Box
Postal Code
City
Select Country code for country the company is established in
Select Default language for the Company for Print forms and  Default Texts
Select a Local Currency for the Company

STEP 8  

After completion all the required information >> save.

   Question related to:

1. What is SAP FICO?

SAP stands for System Applications and Product in data processing and FICO stands for FI (Financial Accounting) and CO (Controlling). SAP FI deals with financial reporting and accounting such as preparation of financial statements, tax computations etc., while SAP CO deals with accounting and internal orders such as cost sheet, inventory sheet, cost allocations etc. It stores data in huge scenario, and also computes the data without losing it.

2. What are the other modules to which Financial Accounting is integrated?

The other modules to which Financial Accounting is integrated are:

1) Sales and Distribution

2) Marketing management

3) Human Resource

4) Production Planning

5) Controlling of financial transaction

3. SAP FI what are the organizational elements?

1) Company code 

2) Business area 

3) Chart of account 

4) Functional area

4. 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.

5. 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.

6. 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.

7. What is SPRO stands for?

SPRO stands for SAP Project Reference Object.

8. What is IMG stands for?

SAP Reference IMG stands for implementation guide.

9.In SAP how many types of IMG's are available?

There are 3 types of IMG are available:

(a) Reference IMG

(b) Project IMG

(c) Enterprise IMG

 

10. How company is different from company code?

Company is a parent company and company code are subsidiaries one. One company has two or more company codes.