Easy Guide to Company, Company code and Business Area in SAP

Company is the top most level organizational unit in sap. It does not involve in the posting of transactions but can generate consolidated reports across different legal entities.

Lets assume we are creating a company named Sunrise pvt ltd with its head office in Kochi

Navigation path

• Method 1: Sap Easy Access Menu

   spro>sap reference img>enterprise structure>Definition>Financial Accounting>Define Company.

•  Method 2:Use transaction code

  OX15

Company Code is the central organizational unit and separate entity recognized by law. All the financial transaction are posted to this.

Now lets create a company code for sunrise pvt ltd Kochi

• Method 1: Sap Easy Access Menu

  Spro>sap reference img>enterprise structure>definition>financial accounting>edit,copy,delete, check company code

• Method 2:Use transaction code

  OX02

Business Area is an internal reporting unit which is used to track performance of business segments like products, departments or regions .It mainly helps in segment wise reporting.

Lets assume sunrise pvt ltd operates in multiple regions. To track performance region-wise, we will define Business Area as Kochi and Tamil Nadu.