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Sap Practice World Class

The document outlines the process of defining a company and its codes in SAP, emphasizing that while defining a company is optional, creating a company code is mandatory for accounting purposes. It explains the significance of business areas for reporting, fiscal year types, and the importance of a well-structured chart of accounts for financial health and compliance. Overall, it provides essential guidelines for setting up company structures within the SAP system.

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satyasrinalluri0903
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21 views4 pages

Sap Practice World Class

The document outlines the process of defining a company and its codes in SAP, emphasizing that while defining a company is optional, creating a company code is mandatory for accounting purposes. It explains the significance of business areas for reporting, fiscal year types, and the importance of a well-structured chart of accounts for financial health and compliance. Overall, it provides essential guidelines for setting up company structures within the SAP system.

Uploaded by

satyasrinalluri0903
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Company creation-/nox15

/nox15_New entry_Save the changes

• (Defining Company is not a configuration. Here just we type Head Office Address
with codification to link to all Company Codes (Branches) to get consolidation report of all
Branches.)
• In SAP, defining Company is optional. But defining Company Code is compulsory.
Here Company means, in SAP Language we call it as Internal Trading Partner. After defining
Company Codes (branches of the Company), we assign all Company Codes to Main
Company for Consolidation purpose.

Company code creation -/nox02(0903)


A Company Code is an independent accounting entity in R/3, for example, a
company within a corporate group. It is designated with a four-digit alphanumeric key.
Balance sheet and profit & loss statements required by law are created at the company
code level.
assigning company code -/nox16

Business area:/nox03
Business Area means how much business done in this Area. This area will be decided by SAP
Customer employees as per their company policy for reporting. Business Area will be
defined to get segment wise reports of Company activities. These Business Areas and Profit
Centre Accounting are meant only for company
Newentry-enter company code and area- save

Fiscal year-/nob29
Generally it means when the book of account will be began & when it will be closed.
Types of Fiscal Year:
I. Calendar year (January to December)
II. Non-Calendar year
April to March
October to September
July to June
A fiscal year should normally consists of 12 regular periods and maximum of 4 special
periods. This periods are called as virtual periods.
Chart of account:
The Chart of Accounts is nothing but the list of General Ledger Accounts.
Important purpose of COA is to segregate expenditure , revenue , assets , liability so
that viewer can quickly get sense of company financial health.

A well designed COA not only meets the information needs of the Mgt , but it also helps
business to comply with financial reporting std.

• Operating chart of accounts


• Group chart of accounts
• Country-specific chart of accounts

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