Company code is the central organizational unit used for financial accounting purposes. This is the most important organizational unit in SAP (without which FI cannot be implemented). Every legal entity is created as a company code in SAP. This is the central organizational unit to which all other organizational units of other modules will be assigned.
Examples of dependency to other modules
- Plants of MM Module assigned to company code
- Sales organization of SD is assigned to company code
- Personnel area of HR is assigned to company code
All financial postings in SAP are done with reference to the company code.
SPRO > Enterprise Structure > Definition > Financial Accounting > Define, Copy, Delete, Check Company Code
OX02
The smallest organizational unit for which a complete self-contained set of accounts can be drawn up for the purposes of external reporting. The process of external reporting involves recording all relevant transactions and generating all supporting required for financial statements (balance sheets, profit and loss statements and so on.)