What is Company Code in SAP

What is Company Code in SAP

A company code is an independent organizational unit that is registered under the companies act 1956. Under company code, you can generate individual financial statements like profit & loss accounts and balance sheets.

§ The definition of company code in SAP is mandatory.

§ It is mandatory to create at least one company code for implementing the SAP financial accounting module.

You can define company code in SAP by using a navigation method or transaction code.

§ Navigation: – SPRO – IMG – Enterprise Structure – Definition – Financial Accounting – Edit Copy, Delete, Check company code

§ Transaction code: – OX02

How to define company code in SAP

Step 1) Enter transaction code “OX02” in the SAP command field and enter to continue.

Step 2) Click on the “New Entries” button to create a new company code as per organizational requirements.

Step 3) Update the following details.

§ Company code: – Enter 4 digits alphanumeric code that identifies a company in SAP

§ Company name: – Update the name of the company

§ City: – Enter the name of the city in which the company is located.

§ Country: – Enter the name of the country. Press F4 for possible entries and you can select the code from the list.

§ Currency: – This currency is also called home currency or local currency.

§ Language: – Our default language key: is English (EN).

Step 4) After updating all the required details, click on the save button to save the configured data.

Now the system prompts another screen to update the full address of the company. Update all the required address details of the company and press enter to save the data.