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SAP how-to guides · LessonReviewed by Arjun, SAP Solution Architect · Updated · Published · SAP S/4HANA 2023 · all levels

SAP Configure company code

The company code is the legal entity for financial accounting. This guide outlines creating and configuring one in the IMG (SPRO).

Quick answer

To configure a company code, go to Enterprise Structure, Definition, Financial Accounting in SPRO and copy the SAP reference company code rather than starting blank. Set the key, name and address; assign the currency, chart of accounts and fiscal year variant; configure posting-period variant, document types and tolerances; assign it to its controlling area. Build in DEV, test in QAS.

Key takeaways
  • Watch out: a company code is nearly immovable once documents exist, so agree it before creating it.

Step by step

  • In SPRO: Enterprise Structure → Definition → Financial Accounting → Define/Edit company code (or copy the SAP reference for speed).
  • Set the company code key, name, and address.
  • Assign the currency, chart of accounts, and fiscal year variant.
  • Configure global settings: posting-period variant, document types, tolerances.
  • Assign the company code within the enterprise structure (to controlling area, etc.).

Notes and tips

Copying the delivered reference company code brings a lot of consistent settings, faster and safer than starting blank. Currency, chart of accounts and fiscal year are foundational and hard to change later, so decide them carefully. Do this in DEV, capture it in a transport, and test in QAS.

Common pitfalls

  • Following steps without understanding the concept.
  • Skipping testing in a non-production system.
  • Applying blindly to a different scenario.
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