How to Create Company Code in SAP

The following SAP tutorial guides you on what is company code and how to define a new company code in SAP ECC & S4 Hana system.

As per the FI enterprise structure, After configuring the company, the next step is define a new company code.

Let us discuss briefly about the company code in SAP:

What is Company Code in SAP?

Company Code in SAP is an organizational unit of Financial Accounting (FI) for which you draw individual financial statements like Balance Sheet and Profit & Loss Account for purpose of external reporting.

The Creation of company code in sap is mandatory, you need to define minimum one company code to implement SAP for your organization.

Important points

1. At least one company code must be defined in an SAP system to implement SAP FI – Financial accounting module in SAP.
2. Company codes must be implemented as per tax law, commercial law.
3. It is used for an external accounting systems to general statements.
4. The financial documents are created at company code level, no FI document exists without the company code.
5. You can generate the financial statements company code wise.
6. If you have multiple company codes and assigned to single company, then you can generate consolidated statement.

How to Define a New Company Code in SAP

Refer below step-by-step guide on:

• Creation of company code in ECC system
• Creation of company code in S4 Hana system

You can use the following IMG menu path or transaction code to create a new company code in ECC & S4 Hana system:

1. PATH:-  IMG Reference –> Enterprise Structure –> Definition –> Financial Accounting –> Edit, Copy, Delete Company Code
2. Transaction code:- OX02

Create of Company Code in ECC System

Step 1:-  Enter Transaction Code SPRO in the commend field and press enter

Steps 2:-  In customizing execute project screen select SAP Reference IMG

Step 3:- In the next screen select Edit, Copy, Delete check Company Code

Step 4:- The below screen displays after selecting Edit, Copy, Delete Company Code ( Define Company Code )

we can create company code by selecting the above two options. By selecting the first option copy, Delete, company code all the configuration and tables get copied automatically along with assignments.

Here we are creating company code manually configure all the assignments by selecting the second option Edit Company Code Data. Double click on Edit Company Code Data

Step 5:- Click on New Entries and update the following details

1. Update new Company code key AD06

2. Give the company name Adarsh Technologies for identifying the company code key

3. In Additional Data update the details of  City, Country, local Currency of company, Language.

Click on Address and Update the following fields – 

After updating all the address details, click on save icon to save the details. Now it prompts for customizing request number, select the customizing request number or click on create icon to create a new customizing request number for company code and save the details.

Thus the company code AD06 is created in SAP.

Watch Video on how to define company code in SAP. 

Creation of company code in SAP S4 Hana System:

Step 1: Login to S4 Hana system using your login credentials

Step 2: Execute the transaction code: ‘OX02‘

Step 3: Click on new entries to create a new company code

Note: To change the existing the company code details, click on the company code and update the required details.

Step 4: On new entries of company code creation screen, enter the following details:

• Company code key
• Company name
• City
• Country/Region
• Currency
• Language

Step 4: Click on ‘Address Icon’ to update the address details for the new created company code.

Step 5: Finally, after maintaining all the required details for company code, click on save icon.

Now select the customizing request number and save the details in SAP S4 Hana system.

Successfully new company code was created in SAP S4 Hana system.

Practice Guide

After referring above step-by-step tutorial on creation of a new company code, now try to create a new company code as your own or refer below details to create.

Continue to read: Assignment of company code to company.