Meaning and Creation of Company codes SAP FICO Company/Business Area

Which is the best method to create a company code.
- copy an existing company code or copying from country templates.

What is the process involved in copying from a country template.

For configuring SAP, generally three steps are required

1) create company name and address
2) creation of company code
3) currency and country setting
4) Assign company code to company

In same organisation i.e. in one company more than two company codes are maintaing, then its better to copy from other company code from ec01, later on you can customised/change specific settings according to client requirements.

If your want seperate setting in your own company code, that time its better to configure by creation rather than copy

In above that is your choice and need for reqirement.

Otherwise you can upload certain data by creating company code.


Now my doubt is What is the Difference between Company and Company Code?

Company is the smallest organizational unit for which individual financial statement can be drawn according to the relevant commercial law.

Company code is the smallest organizational unit for which complete, self-contained set of accounts can be drawn up for external reporting purposes


Company - A company is a legal entity or a organisation which is to carry out a business and under a company you have lot of sub companies.

For Example
Tata is a company
TCS,Tata Power,Tata Steel, is a company code under a company TATA
Under Company code you have business area associated with it where the business areas may be scattered in different parts of the world where you can have reporting done for different business area or you can also call it as Profit Centre.


A company is the Group of company and company code is the all the companies for which u want seperate books of accounts. Company codes are assigned to company for consolidation purpose.

example :- reliance is the company

and RIL,Reliance infocomm,Reliance Petrochem etc are the company codes.

All these co.codes are assigned to reliance company for consolidation purpose.


Along with that technical difference is COMPANY cosists of 6 digit alphanumeric key where as COMPANY CODE cosists of 4 digit alphanumeric key.


Company means group company for example : Tata Group

Company code means one of the company of its group ex:
Tata Chemicals, TCS, Tata Steels etc.