Company Code in SAP

When any business or organization is going to be set up, it needs to be registered in the respective country under the Company Act with a unique name, address, nature of business, and governing body. Generally, it is the head office of that organization.

What Is A Company Code In SAP

  • A company code is a legal and independent accounting unit that is responsible for the entry of all accountable transactions.
  • Maintain and publish statutory requirements according to the Company Act.
    • Profit and Loss statement
    • Balance sheet.

Feature of Company Code

  • Company code is the Higher organisational unit of the Finance module. So FI Consultants create a company code.
  • Company code is a physical entity so it has a location and address.
  • Length of characters:
    • 4 Character Alpha-numeric Key
  • A company Code can be created with a new one and can also be created with reference from predefined company codes like 0001 or 1000.
  • Currency and Language can be maintained for a Company Code.

Relationship and Assignment

  • Company:
    • One company can have multiple Company codes.
    • One Company Code can be assigned to only one company.
  • Plant:
    • One Company Code can have multiple plants in different location.
    • However, one Plant can be assigned to only one company code, because one Plant can be the property of one organisation, not multiple organizations. Day-to-day expenses of the plant can be booked under one company code only.
  • Sales Organisation:-
    • One company code must have one Sales organization.
    • One Company Code may have multiple Sales organizations.
    • One Sales organization can be assigned to only one company code.

Technical Information

  • Company code T.Code: [OX02]
  • Path:- IMG > Enterprise Structure > Definition > Financial Accounting > Edit, Copy,     Delete, Check Company Code > Edit Company Code Data  
  • Company Code Table Name:- T001

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