How to Create a Company in SAP
Mason Garcia
⚡ Smart Summary
Company in SAP is the highest organizational unit used to consolidate the financial statements of several company codes, created in customizing under Enterprise Structure with a unique company identifier and address details.
What is a Company in SAP?
A company is the highest organizational unit in SAP used to consolidate the financial statements of several company codes. It sits above the company code in the enterprise structure and is identified by a unique company ID within the corporate group.
Why Create a Company in SAP?
A company is created when an organization needs consolidated reporting across multiple legal entities. By grouping company codes under one company, finance teams can produce combined financial statements for the whole group.
Creating a company is optional: it is only required when group consolidation is needed, and it is defined once in customizing under Enterprise Structure.
Steps to Define a Company in SAP
The following steps define a company using the SPRO customizing path.
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 -> Define Company.
Step 4) In the next screen, press New Entries.
Step 5) In the next screen, enter the company details:
- Enter a unique Company ID for the company within your corporate group.
- Enter the Company Name.
- In the Detailed Information section, enter the company address details such as street, PO Box, postal code, and city.
- Select the Country code for the country where the company is established.
- Select the Default language for the company for print forms and default texts.
- Select a Local Currency for the company.
Step 6) After completing all the required information, press save 
and enter your customizing request number.
Your company is created.
