SAP Fico Financial Accounting SAP Financials What is SAP Fico Financial Accounting ?
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.