SAP MM : HOW To Configure the COMPANY CODE in SAP?


COMPANY CODE: The company code is the smallest organisational unit for which you can have an independent accounting.  It is a legal entity for which the financial statements such as Balance Sheet, Profit & Loss Account are created. It may represent a company within a corporate group

  •  Multiple companies can be defined under a client. The company data is shared across all plants
  •  You can set up several company codes per client to manage the accounts of independent organizations simultaneously.
  •   At least one company code must be set up in each client.
  •  You should create a company code according to tax law, commercial law, and other financial accounting criteria. As a rule, a company code in the SAP system represents a legally independent company.
  • The company code can also represent a legally dependent operating unit based abroad if there are external reporting requirements for this operating unit, which can also be in the relevant local currency
Standard settings in SAP
Company code 0001 has already been created in clients 000 and 001 for the country DE (Germany). All country-specific information ("parameters") is preset in this company code, such as the payment methods, tax calculation procedures, and chart of accounts typical for this country.
If you want to create a company code for the USA and its legal requirements, you must first of all run the country installation program in client 001. The country of company code 0001 is then set to "US" and all country-specific parameters related to it are set to the USA

SAP Recommendation 
You should keep the preset company code number 0001 if you only require one company code. This keeps to a minimum the number of tables you need to set up.
SAP recommends the following procedure when creating company codes:
1.    Create the company code using the function "Copy Company Code".

HOW TO Configure the COMPANY CODE in SAP?
Create your company codes based on the reference (company code 0001) delivered with the standard system. SAP recommends using the function "Copy Company Code" to create your company codes.

STEP 1: Following is the path For EDIT, COPY, DELETE, CHECK COMPANY CODE Configuration
  • Transaction code : SPRO / EC01

STEP 2:Click On SAP reference IMG Option, and then Go as per following Path

STEP 3:   Click on execute button to EDIT, COPY, DELETE, CHECK COMPANY CODE, Then Following type Window will Pop Up

STEP 4:   Click on Copy, Delete, Check Company Code(Following type Window will open)

STEP 5:  Then Click on Copy Button (Following type Window will open)

STEP 6: Update the Following Data
  • From Company Code :enter system provided Code 0001 or 1000
  • To Company Code: You can select a four-character alpha-numeric key as the company code key ( This is Your actual working Company Code). This key identifies the company code and must be entered when posting business transactions or creating company code-specific master data

Click on tick button to proceed further
·         Following Type Windows will Open

Click On Yes Button until Ask Currency

Select the Currency & Click on tick button to proceed further

Some Time Once again Following type window will Pop Up Then

  • Click on Copy Button or hit Enter button without changing any information
  • Click on tick button to proceed further
  • If Once again sametype window will Pop Up
  • Then Click Cancel Button

STEP 6: Once again Following type Window will Pop up ,Click On Yes Button 

STEP 7:  Click on tick button Until following window will pop up

STEP 8:  Click on Save Button to store Configured data

STEP 9:  Then Click on Back Button 

 (Following type Window will open)

As we have copy the System Created Company Code so we have t edit the Company Details As per our Requirement Following Procedure is deal with Same

STEP 10:  Click on Edit Company Code Data (Following type Window will open) , 

STEP 10: Then Select the Company Code we have created as per above step & then Click on Details Button or (press Ctr+Shift+F2)

STEP 11: New Window will Open with Std Company Name & details , Update the Following data as per our Company

  • Company Name : Give your working company Name

Additional Data
  • City: Enter City Name
  • Country : Select the Country Name in which Company is situated. The country key specifies which country is to be seen as the home country; all other countries are interpreted as "abroad". This is significant for business and payment transactions because different forms are used for foreign payment transactions. This setting also enables you to use different address formatting for foreign correspondence
  • Currency:  Your accounts must be managed in the national currency. This currency is also known as the local currency or the company code currency. Amounts that are posted in foreign currency are translated into local currency hence Select the Currency In Which Company Maintain their Balance sheet
  • Language Key: Select the Language Key. The system uses the language key to determine text automatically in the language of the relevant country. This is necessary when creating checks

STEP 12:  Hit Enter Button / Click on Address Button (Following type Window will open)

Update the required  Address Data The address data is necessary for correspondence and is printed on reports, such as the advance return for tax on sales/purchases.

STEP :  Click on Save Button to store Configured data

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