The company code is an organizational unit used in accounting. It is used to structure the business organization from a financial accounting perspective. The company code represents a legal entity for financial reporting purposes. This means that in all the financial transactions and master data definitions the company code must be identified.
Importance Company Code plays a very vital role in SAP Finance. It is the backbone of all the accounting. It works as the central organisational unit in the whole accounting.
Implementation Consideration SAP has provided country specific templates for using in creating Company Codes. Using Transaction Code EC01 the templates can be used to create new Company Codes.
Tips The Company Code is four digit number. Please use all the four digits i.e. you may use numbering like below:
1000 Company code A in India 1100 Company Code B in India 2000 Company code C in UK 2100 Company Code D in UK 3000 Company Code E in USA 3100 Company Code F in USA
The numbering should be decided after considering the facts like geographical location etc. In the above example I have use series of number as below: Starting with 1 for all company codes in India Starting with 2 for all company codes in UK Starting with 3 for all company codes in US.