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Former Member

company and client

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?


M Russo

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    Former Member
    Jan 20, 2011 at 08:02 AM


    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.



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    • Former Member Former Member

      Dear Russo

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



      Consultant/Systems Analyst- SAP SD/MM