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The Concept of Legal Entity and Company Code in SAP SF and SAP HCM

Sep 28, 2017 at 03:47 PM

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I would appreciate some clarifications about the above.

In SAP HCM, a Company Code is a self accounting entity that generates its own Balance Sheet and other accounting records. At what level of the structure of the Organization in SuccessFactors, can we have an object that is self accounting? Can it be the Legal Entity or the Business Unit i.e. Can Businees Unit or the Legal Entity be equated to Company Code in respect of that?

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Rebecca Murray Sep 30, 2017 at 05:03 AM
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The legal entity in SF corresponds to the company code in SAP HCM.

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Thank you very much for your response Rebecca. So, does that mean that we can have more than one Legal Entity in one country? For example, if I have a company which has 2 different lines of business and each line of business is supposed to be self accounting (but they both belong to the same company -Legal Entity). In SAP HCM, that company will be configured with 2 Company Codes. In SuccessFactors, will it be 2 Legal Entities in the same country?

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You can have more than one legal entity in one country. I don't know about your example above. If there is only one legal entity I would likely configure that with 1 company code in both SAP HCM and SF. But I will leave it to your judgement. SF can support either setup but that doesn't mean that it is correct. Legal Entity corresponds to Company Code and these values should be obtained from your customer's finance department based on legal registration and tax filings (generally). Think about mapping to FI - that should drive your values.

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Thanks Rebecca

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