Justin Valley explores the unique meaning of company codes in SAP.
- [Instructor] A company code is the smallest organizational unit where a complete, self-contained set of accounts can be reported on. Let's have a look at all the company codes available in this client. To do so, I'll enter transaction code oby6 and press Enter. This is a list of the company codes I have available in my test system. As you can see, each company code is designated by a four-digit number. Organizations usually define a numbering convention based on geography.
For example, all of the company codes with locations in the US could start with one, while all companies in Australia would start with five. We then see the company name, the city where it's located, the country, currency, and the default language. Multiple company codes in this list could be rolled up together to a single company. A company is the smallest unit where financial statements can be created and comply with commercial legal regulations. I'm double-clicking on company code 1710 so we can drill down and see more information.
Now it should be noted that most end users will never have access to change anything on this screen. These master data settings are decided when the system is being configured and will usually remain constant. In the Accounting Organization area, we have fields related to how this company code is organized. I'll click in the search box on the Chart of Accounts field. We see that we're in the chart of accounts with code YCOA, called Standard Chart of Accounts. This is a default option when creating a company code.
Below, we have the checkbox next to Company Code is Productive. When it's checked to active, it means the transactional data and master data cannot be deleted from the system as it's actually being used. To the right, we have the Fiscal Year Variant field. I'll click on the search button in this field. We see that the code K4 means this company code's fiscal year is set to a normal calendar year with four special periods. I'll close the result screen.
The bottom section of the screen shows processing parameters. These fields include accounting processing rules for exchange rates and tax settings. Once all these fields are configured, a company code is ready to be used as the central organizational unit for external accounting.
- Company codes in SAP
- Reconciling accounts in SAP
- Entering a G/L account document
- Parking a G/L document
- Creating business partner (supplier)
- Creating invoices from POs or sales orders
- Managing purchase orders
- Posting incoming payments
- Creating master records for assets
- Managing asset depreciation and retirement
- Generating accounting reports