In this Blog you will Learn what is the company and how to define the Company in SAP.
What is Company in SAP
The company is an organizational unit in accounting that allows you to organize your enterprise to meet certain legal requirements in a country/region. in other words you can say company is the highest organizational unit in SAP, for which financial and consolidation statement can be generated according the Commercial law. Company can also called as an internal trading partner.
A company can have one company code or multiple company code, its always depend on the organizational structure. based on that you can generate the Financial statement for single company or consolidated company’s.
Note: All company code within the company can use the same chart of accounts, Fiscal year and different currencies. to create a company in sap is optional but to generate the consolidation statement at company level its mandatory to implement.
Important Key points about Company Code:
- A Company is the top-level organizational unit used for consolidated financial reporting
- It groups together multiple Company Codes under one legal/financial entity
- It is mainly used when your organization needs to prepare consolidated financial statements (e.g., combining multiple legal entities for group-level reporting).
- A Company Code is required for all actual transactions (posting invoices, payments, etc.), while Company is optional unless you’re doing group-level reporting.
- A Company does not post transactions.
- All accounting transactions occur at the Company Code level.
- One company can be assigned multiple company codes (e.g., different countries or business units under one holding company)
- A Company Code can only be assigned to one Company.
How to Create Company in SAP
SAP IMG Path: – SPRO → SAP Reference IMG → Enterprise Structure →Definition → Financial Accounting → Define Company
Tcode: OX15
Step1: Login to sap and enter the tcode SPRO
Step2: click on SAP Reference IMG
Step3: Follow the SAP Menu Path as per below screen shot.
Step4: Click on the Position, and click on New Entries.
Step5: enter the company details as per below.
- Company – enter the company code. Maximum length 6
- Company name – Maximum company length is 30
- Street – enter the street
- Po Box
- Enter the Postal Code
- Enter the city
- Enter the Country/ region
- Enter Language key
- Enter Currency
After entering all these details then save.
Note: once you save and exist you have to give the transport number to save the changes.
Table name for Company:
Table Name: T880
Enter the tcode Se16n in search
table name T880 and enter
then give the company code in company column and execute
