Definition of Company Code

1.Transaction Code: SPRO
2. Click Enterprise IMG button
3. Select Enterprise Structure -> Definition -> Financial Controlling -> Define, Copy, Delete, Check Company Code -> Edit Company Code Data
4. Check the check box and all yes radio buttons. Click Continue button
5. Click New Entries Button and Type your company code and name.

Assignment of Sales Organization to Company Code
1. Transaction Code: SPRO
2. Click Enterprise IMG button
3. Select Enterprise Structure -> Assignment -> Sales and Distribution -> Assign Sales Organization to Company Code

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The sales organization is an organizational unit within logistics, that structures the company according to its sales requirements. It represents the selling unit as a legal entity. It is responsible for product guarantees and other rights to recourse, for example. Regional subdividing of the market can also be carried out with the help of sales organizations.

Each business transaction is processed within a sales organization.

Each sales organization is assigned exactly one company code for which you enter all accounting details of the sales organization.

A distribution chain can be active for several plants and the plants can be assigned to different company codes. If the sales organization and plant are assigned to different company codes, an internal billing document is sent between the company codes before the sales transactions are entered for accounting purposes.

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Read also:
Text Determination Procedure in SAP SD

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