Steps to Setup Company & Assign Company Code in SAP FICO
                     Steps to Setup 
Company & 
Assign Company 
Code in SAP FICO
A company is a business organization or group of 
businesses whose individual financial statements are 
prepared in accordance with the applicable commercial 
law in that country. The company’s financial 
transactions are recorded in the local currency.
A five-character alphanumeric key identifies a 
company, known as Company Code. Company codes 
are a component of your organization’s financial 
transactions, which are viewed at the company code 
level. Once a company code has been defined in 
configuration with all of the required settings, other 
company codes that are later created should be copied 
from the existing company code and then changes can 
be made as per business requirements. This tutorial 
will teach you how to create a company code in SAP.
A company can have multiple company codes and 
operations in different locations, but they must all be 
part of the same business unit.
This article will guide you through the process of 
creating a new company and assigning the company 
code in SAP FICO.
Creating A Company
About Company
A company is an organizational unit for which a 
separate set of financial statements can be prepared 
based on business rules. A company can be made up of 
one or more company codes. Local currencies are used 
by a company to keep track of its transactions. All of a 
company’s company codes must use the same Chart of 
Accounts and Fiscal Year for transactions. SAP does not 
compel you to form a corporation.
Here are The Key Things 
You Need To Know
You can prepare financial statements that comply with 
the laws of the country in which the business is 
located.
 A company can be assigned one or more company 
codes.
 It is a SAP organizational unit that can be selected or 
deselected.
 If a company has more than one company code, they 
should all use the same chart of accounts.
Creation Of A Company 
Code
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.
Define Company Code
Step #1 Enter Transaction code SPRO in the command 
field
Step #2 In the next screen, Select SAP reference IMG
Step #3 In the next screen, Display IMG follow the 
menu path
SAP Customizing Implementation Guide -> Enterprise 
Structure ->Definition->Financial Accounting->Edit, 
Copy, Delete, Check Company Code
Step #4 In the next screen, select activity – Edit 
Company Code Data
In the Change View Company code screen
Step #5 Select New Entries
Step #6 In the Next Screen, Enter the Following 
Details
 Enter your Unique Company Code Number
 Enter Company Name
 In the Additional Data section Enter City
 Enter Country for the Company
 Enter Local Currency
 Enter Default Language
Step #7 Click the Address Details button on the same 
screen
Step #8 Enter Address Details for the Company. This 
will appear in print forms
 In the Name Section Enter Title and Company Name
 In the Search Term section, Enter Search terms 1 and 
2
 In the Street Address section, enter street, postal 
code, city, country
 In the P O Box Address section, Enter PO Box and 
Postal Code
 In Communication Section, Enter appropriate details
Step #9 After Completing this information, Press Save 
How to Create a Company Code in SAP & Assign 
Company Code and Enter your Change Request 
number.
You have successfully created a new Company code.
Assign Company Code to 
Company
After successfully creating a company code and a 
company in SAP, you must assign the company code to 
the SAP system. In SAP, the link between company and 
company code is established by assigning a company 
code to a company.
You can assign the company code by using either the 
navigation method or the transaction code.
 Navigation: – SPRO – IMG – Enterprise Structure – 
Assignment – Financial Accounting – Assign company 
code to company
 Transaction code: – OX16
Step #1 Enter Transaction code “OX16” in the SAP 
command field and press enter to continue.
Step #2 On change view “Assign company code -> 
Company”: Overview screen, click on the position 
button and give your company code key. Now your 
company code displays in the window.
Step #3 Now update your company key “SKRT” in the 
given field.
Step #4 After the assignment of the company code to the 
company, click on the save button and save the 
configured data.
We have successfully assigned company code “SK01” to 
company code “SKRT” in SAP systems.
Now that you’ve learned how to create a company code in 
SAP, why not look into other free lessons to further your 
understanding of Financial Accounting in SAP? You can 
take a SAP course in Ahmedabad with us and hone your 
skills in SAP.
Originally Published: 
https://s20.in/blog/setup-company-assign-company-code-s
ap-fico/
 
Super 20 Training Institute
www.s20.in 
+91 7069 646028
Address
205, Narayankrupa Square, 
Opp. H K Commerce College, 
Gandhigram Railway Crossing, 
Ashram Road, 
Ahmedabad – 380009