legal entity

[Former Member]

Hi

What is legal entity where it is mapped?

[sanilbhandari]

There is nothing called Legal Entity in SAP. Depending on your reporting and business requirements, you can map a legal entity. Generally it is a practice to create a legal entity as a company code in SAP. However, in many cases, plants with in a Legal entity called a company are also created as company codes and then consolidation done for all the company codes. So essentially, it depends on how one wants to do reporting and map business structure in SAP

Regards

Sanil Bhandari

[Keshi1]

Legal entity is a separately legally resisted company you can create separate company codes for separate legal entities.

The legal entity indicator enables you to distinguish between the different balance sheets for legally separate entities within one SAP client

Kesh

[Former Member]

answered

[Former Member]

Company codes generally represent the various legal entities within an organization. The Company Code is the lowest level for which you can produce a complete set of financial reports (balance sheet and P&L) for the SEC and other external filing agencies.

Organizations that have subsidiaries and multiple legal entities usually represent those with company codes.

[Former Member]

There is no 'legal entity' in SAP. To me, a 'Company Code' in SAP is a legal entity.