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Author            : P Surjith Kumar

Created on     : 19th Mar 2011

Author Bio 

I am working as Senior IT Consultant for the Past 5+ Years.

Business Scenario:

Client wants to create a company (SG Aviation Test) and company Code (AS01 - Asian Trading), located in Singapore. Then want the same to be configured to be in the SAP System.



  1. Navigate to Transaction Code SPRO
  2. Navigate to Define Company
  3. Follow the below path, as shown in the below diagram.
  4. Define the Company Name and Address      
  5. Navigate to Define company code    
  6. Define the Company Code    
  7. Assign Company to the Company Code


A company is an organizational unit in Accounting which represents a business organization according to the requirements of commercial law in a particular country.

It is the smallest organizational unit for which individual financial statements are created according to the relevant legal requirements. A company can include one or more company codes

To define a company, choose the following in Customizing for the Enterprise StructureDefinition ® Financial Accounting ® Define Company

SAP recommends that keep the preset company ID G00000 if only require one company. In this way reduce the number of tables which need to adjust.

Navigate to Transaction Code SPRO

SAP Customizing Implementation Guide

Click  “SAP Reference IMG” button

Navigate to Define Company

Follow the below path, as shown in the below diagram.

Enterprise Structure > Definition > Financial Accounting > Define company

Define the Company Name and Address

Company Name : SG Aviation Test

Then Save the Details.

Company Code:

Smallest organizational unit of external accounting for which a complete, self-contained set of accounts can be created. This includes the entry of all transactions that must be posted and the creation of all items for legal individual financial statements, such as the balance sheet and the profit and loss statement.

The company code is an organizational unit used in accounting. It is used to structure the business organization from a financial accounting perspective.
The company code is an organizational unit used in accounting. It is used to structure the business organization from a financial accounting perspective.

SAP recommends that copy a company code from an existing company code. This has the advantage that also copies the existing company code-specific parameters. If necessary, change certain data in the relevant application. This is much less time-consuming than creating a new company code.


Consultant should keep the preset company code number 0001 if client require only one company code. This keeps to a minimum the number of tables you need to set up.

Navigate to Define company code

Follow the below path and diagram

Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete, Check Company Code

Define the Company Code

Assign Singapore Company Code


When copy a company code, not all the settings is copied, for example there is some data that must be unique for each company code. The fields that are not copied from reference company code 0001 are listed below. After copying the company code data, enter the appropriate data in these fields in the target company code manually. The exact procedure is specified for each field.

Save the Settings in a Transport Request.

Edit Company Code Data

Enter the Company Code (AS01) and its Name Asian Trading

SAP Customizing Implementation Guide > Enterprise Structure > Assignment > Financial Accounting> Assign company code to company in Customizing for the Enterprise Structure.

In this step assign the company code which needs to include in the group accounting to a company.

As Company and Company code created already, Company have to be assigned to the company code.

Assign Company to the Company Code

1 Comment

  1. Former Member

    Hi Surjit,

    I just start a new Demo Project at below given link. When tried to create an IMG for that first it reflect a message IMG will be created in Background.

    After some hours when i tried to log in to IMG with SAP Reference IMG it giving me an Error. Could you pl advise if its related to some Authorization issue or IMG yet not ready in Backgournd


    ABAP Programming Error                                                       
    Runtime Errors
    ABAP Program 
    Application Component  
    Date and Time 
    Short text                                                                                        
    Exception condition "ILLEGAL_EVENT_COMBINATION" raised.                                       
    What happened?                                                                                    
    The current ABAP/4 program encountered an unexpected                                          
    Error analysis                                                                                    
    A RAISE statement in the program "CL_ITEM_TREE_CONTROL==========CP" raised the                
    condition "ILLEGAL_EVENT_COMBINATION".                                                        
    Since the exception was not intercepted by a superior                                         
    program, processing was terminated.                                                           
    Short description of exception condition:                                                     
    For detailed documentation of the exception condition, use                                    
    Transaction SE37 (Function Library). You can take the called                                  
    function module from the display of active calls.                                             
    Trigger Location of Runtime Error                                                                 
    Module type                             
    Module Name