A company is a business organization or a group of businesses that work together and make their own financial statements based on the country’s business law. The local currency is used to record the financial transactions of the company.
A five-character alphanumeric key tells us about a company. A business can have more than one company code and have operations in different places, but they all have to be part of the same business unit.
SAP: Define Company
About Company in SAP: A company is an organizational unit for which a separate set of financial statements can be made based on the rules of business. One or more company codes can make up a company. A company has local currencies that are used to keep track of its transactions. All of a company’s company codes must use the same Chart of Accounts for transactions and the same Fiscal Year. SAP doesn’t force you to create a company.
Company in SAP: Key things to know
You can make financial statements that meet the laws of the country where the business is based.
- You can give a company one or more company codes.
- It is a SAP organization unit that can be chosen or not.
- If a business has more than one company code, all of them should use the same chart of accounts.
Defining a Company in SAP:
SAP IMG Path: SPRO > Implementation Guide for R/3 Customizing > Enterprise Structure > Definition > Financial Accounting > Define Company
OX15 is the code for “Define Company in SAP.”
For making a new company, enter the following information.
- Type in the six-character alphanumeric code that represents the company group.
- Type in the name of your business.
- Change the address in the “Detailed information” box – Street name, PO Box number, ZIP code, and City.
- Enter the company’s country code.
- Enter language key
- Enter the company’s local currency (also known as Company code currency)
- After making the necessary changes, click the Save button or press CTRL+S.
- Pick “Customizing request” from the drop-down menu or make a new one. To make a new Customizing request, click on the icon that looks like a request, as shown in the picture below.
How to Start a Business in SAP
In SAP, you can describe a company by:
Transaction code: – “OX15”
Navigation: SPRO | SAP Reference IMG | Enterprise Structure | Definition | Financial Accounting | Company | Define Company.
- Step 1: Type “OX15” into the SAP command field, as shown in the picture below, and press enters to move on.
- Step 2: On the “Internal trading partners” tab, change the view to: To set up the company in SAP, click the “New Entries” button on the overview screen.
- Step 3: Make the following changes on the “New Entries” screen.
- Business: Enter a key that helps SAP figure out the company group. In our case, we changed “TKART” so that we could start a new company.
- Name of Business: – In this field, you should put the full name of the company.
- Name of business 2:- If the company has a second name, add it here, or leave it blank. Information in-depth
- Street: – Name of the street where the business is
- Postal code: – Enter postal pin code
- City: Change the name of the city. In our case, we changed “Bangalore.”
- What country? You need to change the country key here. For example, IN for India, US for the United States, etc.
- Language key: – Our language is English by default, so the language key is “EN.”
- Currency: Enter the key for the currency in which transactions for the group company are kept. It is also called “local currency” or “home currency.”
Note: If you press the F4 key on your keyboard, you can choose from the list of keys for City, Language, and Currency.
Step 4: Once you’ve changed all of the necessary information, click the “Save” button to save the company information. Now that you’ve been asked for a custom request, click the “New Entries” button to make a new one.
Now, change the request’s description and press Enter to move on. Here’s an updated description of how to set up SAP FICO.
This tutorial shows you how to do the following things step by step:
- Make a new business in SAP FI
- Use SAP FI to make a company code.
- Give the company a company code.
Giving a Company Code
Step 1: Go to reference IMG in SAP.
Step 2: You have to choose the menu path from there.
SAP customization implementation guide > Enterprise Structure > Assignment > Financial Accounting > Assign company code to company
Step 3: Enter the company’s unique ID next to the company code you want to give it.
Step 4: Save the information and enter the customization request number.
In the above screen, the company is given a company code.
This was in brief about simple steps to create a company in SAP FICO. Even a beginner-level learner can abide by these steps and take on creating a company in SAP FICO. If you are based out of Ahmedabad you ought to look out for SAP Training Institute in Ahmedabad, which will be able to help you better.