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author's profile photo Former Member
Former Member

Two legal entities and one Company code

Hi everyone,

We are facing a difficult situation and would like to gather some opinions on the questions we are asking ourselves.

We have 2 legal entities that operate our business and are wondering how we could implement the SAP solution in terms of Company Codes.
Here are the options I would like to investigate:

  1. Merge the 2 legal entities into one single legal entity and have it run under two different Company codes in SAP
  2. Keep the 2 legal entities separated and have them Run under the same Company Code

>> Are those 2 solutions even feasible?

>> What level of SAP customization would they require?

>> What would be the benefits and trade-offs of each situation, both from an IT/ SAP Competence Center point of view (more customization or development required for example?) and from a finance and business point of view (more day to day operations or more difficulty in financial statements consolidations)

I am aware that there are other existing options for my situation ( 1 legal entity and 1 CC or 2 legal entities and 2 CCs) but the two I described above are the one we need to investigate now!

Thanks a lot for your help!


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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Dec 12, 2014 at 06:21 PM

    Hi Quentin,

    I guess both the options would be unfeasible. One company code has a single/unique chart of account which cannot be shared with any other company code. So either of those options will increase your data and legal complications. Better would be to go with the standard solution i.e. each legal entity mapped as a separate company code.

    Do revert back for any queries or doubts.



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  • author's profile photo Former Member
    Former Member
    Posted on Dec 16, 2014 at 10:17 AM

    Hi Quentin

    If you have 2 legal entity then you will have legal complaiance to follow or Tax requirement or posting of documents for specific legal entity . Now If there is no merger than option or thinking as merger is not valid point .

    As SAP Provides you multiple reports for each Company codes .So Adding 2 legal entity and making it as appearing one will be challenging From complianace point of view .

    Please addto this so as to give you more specific reply



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