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There is a difference between Company Code and Company.

Company is mandatory, but it is necessary

for consolidation. In most cases you will have one to one relationship between company code and
company, but there will be cases where you have one legal entity which is operating in different countries.
Every country will have different requirements for external reportin, therefore it would be necessary to
create company code for every country and assign them to the Company ID for consolidation purposes.
Transaction: OX15
IMG path: Eterprise Structure > Definition > Financial Accounting > Define Company
Table: T880

Click on New Entries.

Fill the necessary fields and hit save.

Assign the necessary Transport Request.

Company code is the most important organizational structure for Accounting. It is mandatory and
you will not be able to do anything without it. A lot of the objects in SAP ERP are assigned and
are depended on Company Code, so in the most cases you will start with that.
Transaction code: OX02
IMG Path: Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete,
Check Company Code
Table: T001

If you use the transaction code you will not get the following selection screen.

First chose Edit Company Code Data and choose New Entries :

Click on New Entries and fill the necessary data and hit Save or use the button for mail.

You could assign several company codes to one company as in the case which was briefly
described in post for defining a company. This will help later in the consolidation where
company code are under company.

Transaction: OX16
IMG Path: Enterprise Structure > Assignment > Financial Accounting > Assign Company
Code to Company
Table: T001

After entering in the transaction, find the company code and enter already defined Company in
the field next to it..

Save the entry and assign the configuration to related customizing request.
btw. You could also assign Company to Company Code from global accounting parameters, but
this this way it is a bit more straightforward.

Define Credit Control Area | OB45

Control area is used for controlling the credit exposure of the company to a different operations with our
partners. A prerequisite for defining a credit control area is the fiscal year variant which should be
created or maintained already. One Credit Control Area could be assigned to several company codes.
You could set credit limits on individual customers as well as based on whole market on which the
company is operating.

Transaction: OB45
IMG Path: Enterprise Structure -> Definition -> Financial Accounting -> Define Credit Control Area
Table: T014

When you open the transaction you should hit New Entries.

On the following screen fill the necessary fields according to your requirements. In this case I named
my Credit Control Area the same as my Company Code.

You will have to fill the Address Data:

Here you have the ability to create international version of your company code address data.
After you enter the necessary data you will be prompted again for assignment of customizing

You could use copy option which derive from the template company code following data:


Global Parameters

Customizing tables

General ledger accounts (if you wish)

Account determination

Choose Organizational object -> Copy org.object menu item.

Or you could use the related button for copy.

Usually company code 0001 is used for coping template. If you run country installation program,
then Company Code 001 will be overwritten with country specific parameters.

After hitting Continue button you will be prompted by the system for the different options that
you want to be copied.