How to Create a Company in SAP & Assign Company Code
Mason Garcia
⚡ Smart Summary
Company code in SAP is the central organizational unit of Financial Accounting that represents an independent legal entity, created in two steps that define the company code and then assign it to a company.
What is a Company Code in SAP?
A company code is the central organizational unit of Financial Accounting in SAP. It represents an independent legal entity for which a complete set of accounts and statutory financial statements, such as the balance sheet and profit and loss statement, can be prepared.
Creating a company code is a two-step process: first define the company code, then assign it to a company.
Company Code vs Company: What Is the Difference?
The two units are often confused. The table below shows how they differ:
| Aspect | Company Code | Company |
|---|---|---|
| Purpose | Legal entity with statutory accounts | Consolidation of several company codes |
| Level | Financial Accounting unit | Highest organizational unit |
| Relationship | Many company codes | One company groups them |
| Transaction | OX02 | OX15 |
Define Company Code
Step 1) Enter Transaction code SPRO in the command field.
Step 2) In the next screen, select SAP Reference IMG.
Step 3) In the next screen, Display IMG, follow the menu path: SAP Customizing Implementation Guide -> Enterprise Structure -> Definition -> Financial Accounting -> Edit, Copy, Delete, Check Company Code.
Step 4) In the next screen, select the activity Edit Company Code Data.
In the Change View Company Code screen:
Step 5) Select New Entries.
Step 6) In the next screen, enter the following details:
- Enter your unique Company Code number.
- Enter the Company Name.
- In the Additional Data section, enter the City.
- Enter the Country for the company.
- Enter the Local Currency.
- Enter the Default Language.
Step 7) Click the Address Details button on the same screen.
Step 8) Enter the address details for the company, which appear in print forms:
- In the Name section, enter Title and Company Name.
- In the Search Term section, enter Search term 1 and 2.
- In the Street Address section, enter street, postal code, city, and country.
- In the PO Box Address section, enter PO Box and postal code.
- In the Communication section, enter the appropriate details.
Step 9) After completing this information, press Save 
and enter your Change Request number.
You have successfully created a new Company Code.
Assign Company Code to Company
Step 1) In the SAP Reference IMG, select the menu path: SAP Customizing Implementation Guide -> Enterprise Structure -> Assignment -> Financial Accounting -> Assign Company Code to Company.
Step 2) In the next screen, enter the unique Company ID against the company code you want to assign to this company.
Step 3) Press Save and enter the Customizing request number.
You have assigned the desired company code to the company.
