How to define a company in SAP S/4HANA (Private Cloud and On Premise)

Learn all about companies in SAP S/4HANA

2/3/20252 min read

This time we will take a look on the creation of a company in SAP.

Please be aware that companies and company codes are not the same thing.

While a company code is the smallest organizational unit used for external financial accounting, the company (Also called "Group Company") is a higher-level organizational unit representing the corporate group/holding entity. It is used for consolidated financial reporting.

We can create such a company and assign it to one or multiple company codes. Let's take a look into this:

In our customizing, we navigate to the following path to define a company:

SPRO --> Enterprise Structure --> Definition --> Financial Accounting --> Define company

Now we enter the customizing for the company code by clicking on the respective icon. We are forwarded to the following view:

Here we will select an existing entry and click on "copy as"

No we can specify the target values:

Company: Up to four characters, alpha-numeric

Company Name: up to 30 characters

Name of Company 2: up to 30 characters

Street: Street address of the company

PO Box: Post Box information of the company

Postal Code: Postal Code of the company

City: City where the company is located at

Country/Region: Country/Region the company is located at

Language Key: Decides in which language text are being displayed, text can be maintained and in which language the system prints texts

Currency: Local currency of a Group company. If the local currency differs from the Group currency, a translation from the local currency into the Group currency is necessary.

Once we are finished, we can click on "Copy".

Now all what's left is to click on save and your company is created.

Congrats! You just created a company. Make sure to share this post and watch the corresponding YouTube video I published: https://www.youtube.com/watch?v=UrHuNCar1qw