Company Code is the smallest organizational unit in FINANCIAL ACCOUNTING for which a complete set of FINANCIAL STATEMENTS can be generated. Financial Statements compose the Balance Sheet, Income Statement and Statement of Cash Flows. Generally, a Company Code represent a legal entity.
One of the most important thing in SAP ERP implementation is the configuration of a Company Code. All information posted in SAP system should be assigned to a Company Code. This is a must rule. Otherwise, a complete set of financial statements could not be generated and provided to regulatory agencies, such as Internal Revenue Services, SEC, etc.
I will guide you through on how to configure a Company Code.
There are two ways on how to create a Company Code. First and the easiest way is to copy an existing Company Code. Most of the set-up in the reference Company Code are copied to the new Company Code. Second is to create from Scratch.
A. Copy existing Company Code
Menu Path: IMG > Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete, Check Company Code > Copy, delete, check company code
Transaction Code: EC01
Click the copy button.
The “Copy” dialog box appear. Enter the reference Company Code and new Company Code then press Enter.
This dialog box appears: Click Yes if to copy the G/L Accounts, then press Enter.
The Change Local Currency dialog box appears. Click Yes to allocate different local currency to the new Company Code, then press Enter.
Result, New Company Code is created. Next, enter the name and address of the new Company. You can use this path to go to the Global Parameters:
Menu Path: IMG > Financial Accounting (New) > Financial Accounting Global Settings (New) > Global Parameters for Company Code > Enter Global Parameters.
Enter the Global Parameters of the Company Code, then Click Save button.
B. Create using New Entries
Menu Path: IMG > Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete, Check Company Code > Edit Company Code data.
Enter the name and other important information about the Company.
Enter also the Global Parameters same procedure with the copy existing above. Then Save your new Company Code created.
Congratulations! You can now configure your Company Code.
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