What is the difference between a company and company code in sap?
Company includes one or more company codes (CC). Company in sap is created to draw individual balance sheet based on the legal requirements of the country where it is registered. Company is the group under which CCs are created for consolidation of financial accounts.
CC is created within a company to allow transactional posting to it and for which separate financial statements can be created. It’s created to consolidate subsidiary’s financial statements or any financial statement which has been created under any law.
Can you create a company code without copying it?
Yes, it can be created without copying an existing one. To create it we need to use transaction code OX02 or following path;
SAP IMG > Enterprise structure > Definition > Financial Accounting > Edit
Can you create a company code by copying the existing one?
Yes, you can create is with transaction code EC01 or by using path, SAP IMG > Enterprise structure > Definition > Financial Accounting > Edit, Copy, Delete, Check
With this transaction code you can copy general ledger (gl) accounts, currency and other related settings.
Is it necessary that we should assign company and company code?
Yes, we need to assign both. We need to assign all the CC’s that we have created under the company otherwise the basic objectives of getting consolidated financial statements will not be fulfilled.
We can assign both by using transaction code OX16.
How many “company” can be assigned to a “CC”?
The relationship is one to many i.e. one company can be assigned too many CCs but the reverse is not true.
What are the other objects or variants to which we assign company code?
Many things in sap are assigned to CC. Followings are some of the variants or objects require assignments to a CC;
- Controlling area
- Credit control area
- Profit center
- Cost center
- Chart of accounts
- Field status variant
Do you have a place where we can see all the assignments to a company code?
Yes, you can use transaction code OBY6 to have a look on all the company code settings in sap. You can see chart of accounts, fiscal year variant and other assignments from this setting.