What is the difference between Company and Company Code in SAP?

18
Aug/090

What is the difference between Company and Company Code in SAP?

The definiton of Company on SAP term is:

Company is a client to whom we are going to implement SAP system. It represents a corporate group. It is the highest organizational unit in the enterprise structure.

However the definition of Company Code is:

Company code is an independent organization unit that represents subsidiary of company. Company code is the smallest organizational unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting. It has his own set of database tables from which we can drawn out reports, for example, Balance sheets Profit and Loss accounts that are required by law and those reports can be consolidated at company code level.

The following is the relationship between company and company code:

One company can have many company codes. It means one company code should be assigned to only one company. So the relationship between company and company code is one to many. It means company code should be assigned to company.

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