The SAP ERP business area is a separate organization division. In a large organization, we can identify regional wise, country wise business divisions/branches. After creating business areas, it can generate financial reports according to each business area. Therefore, that financial information can use to benchmark each business division’s performance.
In SAP FICO ERP Compay code is the smallest organizational unit. A Company can have several company codes. Normally the company’s financial statements are viewing by using company code levels. If a company has several SBU’s/divisions it can create several company codes. This will help to prepare a consolidated financial statements.
In order to follow this tutorial you have to follow my define company code in SAP ERP previous SAP Free tutorial.
SAP ERP system, Company and Company code is somewhat different. The company is the main company and company code is a sub-company. In another term SAP Company is a Parent company and Company code is its subsidiary company. Therefore a one company can have several company codes. It’s mainly useful for the reporting purposes.
Each of the company code should use the same Chart of Accounts and the Fiscal Year. It makes easier to consolidation process. Although the each of the company can use different local currency. The company financial statements are view by company code.
In this tutorial we have to create a Company Code and then it should assign to a Company. In my previous tutorial I demonstrated how to create a company in SAP ERP how to create a company in SAP ERP. If you don’t follow that step it’s recommended to read that guide before define company code in SAP FICO .
In this SAP FICO ERP tutorial I’m going to show how to create a new company in SAP. In this free SAP FICO guide I use SAP IDES. It’s a demo system which is specifically used for the train purposes. If you are interesting to learn SAP training you can find IDES service providers on the internet. Creating a company is the first step for self training.