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

Updated: 16 minutes ago

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.

Screenshot of SAP GUI navigation path highlighting how to access Company, Company Code, and Business Area configuration in SAP FI—used in SAP training sessions in Kerala, Kochi, Ernakulam, and Cochin.

  •  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

SAP FI navigation screenshot showing step-by-step access to organizational structure settings for Company, Company Code, and Business Area—featured in SAP FICO training in Kerala, including Kochi, Ernakulam, and Cochin.


  • Method 2:Use transaction code

    OX02


Screenshot showing the 'New Entries' screen for creating a Company in SAP FI, as part of hands-on SAP FICO training in Kerala, Kochi, Ernakulam, and Cochin.

SAP interface displaying the process of adding a new Company entry in the system, demonstrating real-time configuration in SAP FICO training across Kerala, including Kochi, Ernakulam, and Cochin.

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.


New Company creation screen in SAP FI showing input fields for company details—used in practical SAP training sessions in Kerala, Kochi, Ernakulam, and Cochin.



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