The following tutorial guides you on how to define company code in SAP FI step by step with screenshots. After configuring the company, the next step is to configure the company code. Let us discuss briefly the company code.
Define Company Code in SAP
About Company Code:– Company Code in SAP is the smallest organizational unit of Financial Accounting 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.
Company code in SAP – Important points
- At least one company code must be defined in an SAP system to implement SAP FI – Financial accounting module in SAP.
- Company code must be implemented in SAP system as per tax law, commercial law.
- Company code is used for an external accounting systems to general statements.
PATH:- IMG Reference –> Enterprise Structure –> Definition –> Financial Accounting –> Edit, Copy, Delete Company Code
SAP Tutorials
Transaction code to Define company Code in SAP:- OX02
Steps to Define Company Code: –
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 Address enter Click on the Save icon 
Thus the company code AD06 is created in SAP.
Now Create a New Company for the Country: US
- Company Code: AD07
- Company Name: Adarsh Technologies US
Additional Data
- City: New York
- Country: US
- Currency: USD
- Language: EN
Click on Address icon and update the address details for the new company code and click on save icon to save the details. Now it prompts for customizing request number, click on create icon and create a new customizing request number for company code and save the details.
Also learn: How to define company code in SAP S4 Hana
Watch Video on how to define company code in SAP.