company & comapny code

[Former Member]

while doing img setting is it said that Define a company, then Define a company code.

Now assign the comapny to company code. Now my question is what is use of company here?

as all the activity is going to happen with company code. its very basic question but willing ti know the importance of it.

In case If I don't define company what implecation I'll get.

Please tell.

[Former Member]

Hello....

here you need to understand the basic importance of company and company code in every business there is an One name is compulsory to for the identity of the business and and for the legar requirement

For legal point of view we need to difine a company.

Financial statemetns company defined at company code level

at the same time based on legal entity the company codes should be created

i think its clear to u...

Reg,

Sudhan

[Former Member]

hi,

we define company code to generate the legal requirement.

which means at what level we have to present the legal reports, and the company which wee define to know the results of the company performace at country level.

for example : reliance is dealing with different sections. that is communication, oil, retail and financial ect. for all the sector the goverment need a separate reports because all r having different requirements.so we define company at country level and company code at reporting level ( sector wise or based on requireds to generate legal reports).

[Former Member]

thanks for clearing the funda

[Former Member]

creating a company means you are defiing the company which can have more then one comapny codes like

company A is is many filed Manufacturing, finance, holidays, etc. Now you define one compny code for each type of business say B C D.

But B, C & D are all belong to A only. so you need to assing the company codes B C D to A so as you can say B, C & d are parts of A.

Regrds

S

[Former Member]

Hi

Company code is a mandatory setting. It is used for preparing the reporting statements such as balance sheet, p&l statements as per the law under companies act.

Company is used as a reporting entity. It is not a mandatory setting. It is purely optional in case you want to consolidate all your individual company codes under the company.

For example, Reliance Limited is a Company and the different individual operating companies like reliance gas, reliance telecom, reliance property development, etc. are company codes.

Regards,

[Former Member]

Hi,

'Company' is used for reporting purpose.

Regards,

Kiran