What is Company in SAP? and How to define Company in SAP

Company is an organizational element in which financial statements (Profit & Loss Account, Balance Sheet) can be drawn according to the relevant individual legal requirements of enterprise.

Company is also called as group company
It is an optional organizational element in SAP
Company helps to consolidate one or more company codes information and general consolidated financial statements
All the company codes within a company should same chart of accounts and fiscal year

How to define company in SAP

You can create or define company in SAP by referring below configuration steps:

  • Transaction code: OX15
  • SAP IMG Path: SPRO > SAP Reference IMG > Enterprise Structure > Definition > Financial Accounting > Define company

Step 1: Enter SAP T-code “OX15” in the SAP command field and enter.

Define company sap transaction

Step 2: On the next screen “change view internal trading partners” overview, click on “New Entries” option to define company in SAP.

Define new company in SAP new entriesStep 3: On the next screen “New Entries: Details of Added Entries” enter the following details.

Company Enter a key that defines as company in SAP, you are allowed to enter up to 6 digits alphanumeric key.
Company Name Full name of company
Name of Company 2 Enter the name of company 2 if any
Detailed Information
Street Street address of company
PO Box Enter PO box number
Postal Code Enter post code of company
City Name of city where the company is located
Country Name of country where the group company is located, it is also called as home country.
Language Key Default language – enter EN for English language (Press F4 for possible listed entries in SAP)
Currency Enter group currency key, for Indian rupees – INR

Define company in SAPAfter maintaining all the required for new company, choose save icon or press Control+S from keyboard.

After choosing the save icon, you will get a transport request popup box.

Choose the customizing request number and save the request. Now the system generates the message as data was saved.