Enterprise Structure

What is a Company Code and what are the basic organizational assignments to a company code?

Company Code is a unique four alphanumeric characters that represents an independent and legal accounting entity.

Company Code is a legal entity for financial statements like Profit and Loss and Balance Sheets are generated. Plants are assigned to the company code, Purchasing organization is assigned to the company code, and Sales organization is assigned to the company code.

What is the relation between a Controlling Area and a Company code?

A Controlling area can have the following 2 type of relationship with a Company code

a. Single Company code relation

b. Cross Company code relation

Controlling Area is the umbrella under which all controlling activities of Cost Center Accounting, Product Costing, Profit Center and Profitability Analysis are stored.

In a similar way Company Codes is the umbrella for Finance activities.

How many Chart of Accounts can a Company code have?

The COA is a variant that contain the structure and the basic information about general ledger accounts.  COA is used by one or several company codes. Only one COA can be assigned to CCODE.

But Country Specific and Group COA are optional. When we use parallel COA like Country specific, we need to choose which one should consider for B/Sheet and P&L account.

What are the options in SAP when it comes to Fiscal years?

Fiscal year is nothing but the way financial data is stored in the system. SAP provides you with the combination of 12 normal periods and also four special periods. These periods are stored in what is called the fiscal year variant.

There are two types of Fiscal Year Variant

• v Calendar Year
• v Year Dependent Fiscal Year

SAP allows maximum of 16 posting periods each fiscal years. The 16 periods normally comprise 12  regular posting period and 4 special positing period which can be used for such things as posting audit or tax adjustments to a closed fiscal year.

• v K4 = JAN-DEC
• v V3= APR-MAR
• v V6= JUL- JUN
• v V9= OCT-SEP
• v R1= SHORTERNED FISCAL YEAR

What is a year dependent fiscal year variant ?

In a year dependent fiscal year variant the number of days in a month

are not as per the calendar month.

  

How does posting happen in MM (Materials Management) during special periods?

There is no posting which happens from MM in special periods. Special periods are only applicable for the FI module. They are required for making any additional posting such as closing entries, provisions. which happen during quarter end or year end.

How many currencies can be configured for a company code?

A company code can have 3 currencies in total. They are local currency ie company code currency) and 2 parallel currencies. This gives the company the flexibility to report in the different currencies.

Do you require to configure additional ledger for parallel currencies?

Where only 2 currencies are configured (Company code currency and a parallel currency) there is no need for an additional ledger. In case the third parallel currency is also configured and if it is different than the second currency type, you would then need to configure additional ledger.

If there are two company codes with different chart of accounts how can you consolidate their activities?

In this case you either need to write an ABAP program or you need to implement the Special Consolidation Module of SAP. If both the company codes use the same chart of accounts then standard SAP reports give you the consolidated figure.