🏛️ SAP Company Code — Complete Guide
The legal entity that owns the books. Files taxes, produces balance sheet and P&L. Every MM transaction ultimately posts here via the plant. Configuration, T-codes, Chart of Accounts, and the PSEC example.
📋 Snapshot
| What it is | Legal entity — balance sheet, P&L, tax filing unit |
|---|---|
| ID format | 4-character alphanumeric (e.g. 1000, PK01) |
| Mandatory? | YES — at least one needed |
| T-code to define | OX02 |
| Database table | T001 |
| Owner module | FI (Financial Accounting) |
1. Purpose — why Company Code exists
Real businesses have multiple legal entities — group companies, country subsidiaries, joint ventures. Each must file its own taxes, produce its own balance sheet, sign its own contracts. SAP gives each one its own "Company Code" with separate books.
2. Company Code vs Company (the T880 trap)
| Entity | Purpose | Mandatory? |
|---|---|---|
| Company CODE (T001) | Legal entity with books | YES |
| Company (T880) | Higher-level grouping for consolidation only | NO |
3. Mandatory linkages
Every Company Code must be linked to these FI elements before MM can function:
| Linked to | Purpose |
|---|---|
| Chart of Accounts (operating) | The list of G/L numbers (e.g. INT, CAGB, CAUS, INKR) |
| Country | For tax codes, legal reporting |
| Local currency | Base currency for postings (e.g. PKR for Pakistan) |
| Fiscal Year Variant | K4 (Jan–Dec), V3 (Apr–Mar India), etc. |
| Posting Period Variant | Controls which periods are open |
| Field Status Variant | Field requirements per G/L |
| Controlling Area (CO) | If CO is used |
4. Customization — Company Code configuration
- Copy reference CC — OX02 — Don't build from scratch; copy a delivered CC (e.g. 0001) and rename.
- Set basic data — Name, address, country, currency, language.
- Assign Chart of Accounts — OB62 — Choose the chart (INT, CAGB, INKR, etc.).
- Set Fiscal Year Variant — OB37 — K4 (calendar year), V3 (Apr–Mar), etc.
- Set Posting Period Variant — OBBP — Default the variant; manage periods with OB52.
- Set Field Status Variant — OBC5
- Assign Controlling Area (CO) — OX19 (if CO used)
- Tax codes (FI/MM) — FTXP
PSEC example — Pakistani Company Code setup
| Field | Value |
|---|---|
| CC ID | 1000 |
| Name | PSEC Pakistan Ltd |
| City | Karachi |
| Country | PK |
| Currency | PKR |
| Language | EN |
| Chart of Accounts | INKR (Indian chart adapted for Pakistan) |
| Fiscal Year | K4 (calendar year) |
5. "Is this possible?" — client Q&A
Can multiple Company Codes share one Chart of Accounts?
Yes — and common. Multiple CCs sharing one operating chart of accounts simplifies consolidation. SAP's INT chart is designed for this.
Can a Company Code exist without any plants?
Yes — a "pure FI" CC for holding companies or services-only entities. But it can't do MM until at least one plant is assigned via OX18.
Can I change CC currency after go-live?
Practically no. Currency is fundamental to all postings. Conversion is a complex project.
Can a CC be assigned to multiple Controlling Areas?
No. A CC is assigned to exactly one Controlling Area. Multiple CCs CAN share one CO Area.
6. What can't change after go-live
- Local currency
- Chart of Accounts (effectively)
- Fiscal Year Variant (very hard)
- Country (impacts tax)
7. Interview Q&A on Company Code
What is a Company Code?
The smallest organizational unit for which a complete self-contained set of accounts can be drawn up. The legal entity in SAP. Owned by FI but referenced by every MM transaction via the plant.
What's the T-code to display a CC?
OX02 for define/display; FS00 for G/L details within the CC.
How does MM link to FI via Company Code?
Plant is assigned to a CC. When MM posts a GR/IV, the FI posting goes to that plant's CC. OBYC determines the G/L accounts within that CC's Chart of Accounts.