company and company code

[Former Member]

Hi

What is the difference between company and company code ?

[Former Member · Accepted solution]

Hi Satya,

Company Code is a legal entity for which financial statements like Profit and Loss and Balance Sheets are generated. Plants are assigned to the company code, Purchasing organization is assigned to the company code, and Sales organization is assigned to the company code.

A company is an organizational unit in Accounting which represents a business organization according to the requirements of commercial law in a particular country.

In the SAP system, consolidation functions in financial accounting are based on companies. A company can comprise one or more company codes.

All company codes for a company must work with the same operational chart of accounts and fiscal year. The currencies used can be different.

Assign points if useful

Regards

Genie

[Former Member · Accepted solution]

Thanks for your answer.

Now let me go further on this.

Say the co Holdy is holding co.Consolidated BS will be made for this co.

Then there are subsdiary co Sub1 , sub 2, sub 3.

So I understand that there will be co code for each co including holding co, totaling 4 (one for holding and 3 for subs).Now where is company ? is any transaction code for creating co and assigning the co code ?

[Former Member · Accepted solution]

Hi

For Consolidation of financials using EC-CS or SEM-BCS, for each Company Code you need to create a Company in FI configuration.

In ECCS, each Company is created as a Consolidation Unit (for statutory Consolidation). The integration in ECCS with FI is based on the mapping of Consolidation Unit to Company.

In ECCS, Consolidation groups can also be created for Consolidation Units. This concept is similar to Cost Center or Profit Center groups. Financial results can be obtained at Consolidation Group level.

In case of holding / subsidiary companies - Consolidation of Investments needs to be done. For this one of the Consolidation Unit need to be defined as Parent Company. Also the share holdings should be configured. This will enable to calculate the minority interest.

Thanks

Murali.

[Former Member · Accepted solution]

I don't think Satya question was answered !!!

Anybody can explain more detail.

[Former Member · Accepted solution]

Hai,

You can interprete the "Company " as a Goup of company, normally called Client.

It can have one or .multiple "Company codes" which are legally independent accounting units

Regards,

J. Sriram