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What is Company ?

A company in SAP is represented by 6 character alphanumeric code and usually represents the organizational unit in accounting depicting the business enterprise as per the particular country’s commercial law requirements. A company can include one or more Company codes. The creation/ definition of company in SAP is optional, but the consolidation functions in SAP are based on the Company. SAP provides you with the sample Comapny G0000 with all the foreign key relationships. It is recommende that you keep the preset comany ID G00000 if you only require one company, by this you can reduce thenumber of tables which you need to adjust.

What is company code and how this is different from a Company ?

A company code in SAP fi is the smallest organisational unit for which you can draw individual financial statemnets (balance sheet and profit & loss account) for your external statutory external reporting. It is denoted by a 4 character alphanumeric code. The creation of company code is mandatory, you need to have at least one company code per client defined in the system, for implementing SAP Fi SAP financials You may define several comany codes in a single client. SAP comes delivered with company code 0001 in clients 0000 and oo1 (for Germany country code DE.) All country specific parameters like payment methods tax calculationn procedure, chart of accounts are preset in thie company code for this country. In case you want to create a companny code for USA and its legal requirements, not to run the counrty installation program first in client 001, the counrty of company code 0001 is then set to US from DE and all the country specific parameters reletaed to it are set to USA.

You may define a company code by copying from an existing one. In fact SAP financials recomments this approach since this has advantage that you also copy this existing company code specific parameters you may then change certain data in the relevant application. You may also define the company code from the scratch.

What needs to be done if you define a company code by “copy” function ?

When you copy an existing company code, all the comany code specific specifications of the “sourcse” are coied to your new company code “target” (To company code)

Note:- that the “Target” company code should not have been defined earlier, as the same will be defined automatically during the copying procedure.

So, how to do this ?

• Create company code using the function “copy company code”
• Enter/ modify comp;anyh code data(name, description, address and currency ) with fuction “edit company code data”
• Use the transaction code OBY6 to modify any other Global Parameters which need to be different from that of the source “company code”

How to create a new company code from scratch ?

You can use the function “Edit company code Data” to create a company code, from scratch. In this case, the company code “global data” is not compied. Once you create the new company code using this option, then you need to maintain the Global Parameters using the Transaction code OBY6

How to change the company code key ?

Use the “replace” function in the transaction code ECO1 to change th ecompany key. But this is only possibel if no postingshave been made in the Company code that is to be replaced with the new company code key.

Whar are all teh important Global Parameters for a company code ?

The Global parameters for a comopnay code are segregated into two sections

a) Accounting Organisation :- The parameters under this sectioninclude the chart of accounts, credit control area, FM area, company, fiscal year vairant etc. This is also the area wherein you will normally set the company code as prductionve before “going live”

b) Processing parameters :- The processing parameters include settings like field status variant, whether you want the system to propose fiscal year during document entry, Company code- controlling Aread assignment, what wuold be the calculation base for discount tax etc. Whether you will need financial statement sper business area, maximum, exchange rate deviation allowed etc.

SAP fico , SAP financial training covers various aspects of SAP fi training, here I have tried to explain few terminology used in SAP fi course, student can learn SAP fico at SAP Accounting training center in Delhi students learn what is sap fico through SAP fico tutorials