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company and client

Former Member
0 Kudos

Hello Gurus,

Would it valid if I say that

Assuming a company has only 1 company code.

Does this mean that still we need to create a 'client' and assign a 'company' to the 'client' and assign a company code to the company. In other words, in such a case, is 'company' which usually represents a group of companies, still a mandatory organization unit to be created?

What i think is that a 'client' is mandatory for SAP system. Not sure about 'company'.

In this case also, can Business Area be configured for 1 company code only when usually Business area is for cross company codes P&L purposes?

regards

M Russo

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi,

this is to inform you that,

A group can be represented in the system using the terms client and company code. Generally, a client represents a group, while a company code represents a company in the sense of an independent accounting unit. Company codes are independent from each other in the legal sense.

both are not mandatory for SAP to process the transactions.

SOURCE : SAP LIABRARY.

balajia

Former Member
0 Kudos

Dear Balajia,

From the SAP online help glossary, company is defined but can i also confirm that 'company' org unit is an optional unit when implementing SAP and it is used only when business requires?

thanks.

M Russo

Former Member
0 Kudos

Dear Russo

"Company' is NOT mandatory, but 'Company Code" is INDEED Mandatory.

Rgds

Sumanth.Gururaj

Consultant/Systems Analyst- SAP SD/MM

Answers (0)