How many company codes one can create in SAP and how to define it in SAP

Simple questions like ‘how many company codes one can create in SAP ‘may be asked in an interview to test your understanding in SAP. Company Code or CC is used in SAP by almost all sub modules to post financial transactions into SAP. Before answering this question, let us understand why company codes are created in SAP.

In SAP, Company code is used to define the smallest organisational unit for which there is a requirement of creating complete set of accounts, balance sheet and statement of profit and loss account. One can also use it to represent a legally dependent unit in foreign country for which different external reporting is required.

In financial accounting module of SAP, all transactions are entered into company codes. If you have one organization then after creating a company in SAP you are required to create one or more than one company codes and get it assigned to the company otherwise SAP will not allow you to post any financial transactions.

In SAP there is no maximum number of restrictions of creating company codes. However, at least one CC is required to be created in SAP; otherwise, transactional data can not be posted into it.

If there is a requirement of creating more than one company code to manage the accounting data then one can do so by creating it in the same client.

In SAP, one can define it by using transaction code or though SAP SPRO menu. You want to create it in SAP by copying an already existing master data or by using new entry option.

Transaction code OX02 is used to create a company code without copying an existing company code and transaction code EC01 is used to create by copying an already existing company code.

Relevant SAP table: T001

Relevant Transaction Codes: OX02 or EC01

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