Creation of the Company in SAP FICO

Creating a company in SAP FICO is the first step in setting up the enterprise structure. The "company" represents the top-level entity within an organization for which financial accounting is carried out. This guide provides a step-by-step explanation of the process, along with examples to help you understand the configuration.

Steps to Create a Company in SAP FICO

Step 1: Accessing the Company Creation Screen

To create a company in SAP, follow these steps:

  • Navigate to the SAP Easy Access menu.
  • Enter the transaction code SPRO to access the SAP Reference IMG.
  • In the IMG screen, go to Enterprise Structure > Definition > Financial Accounting > Define Company.

Click on the "New Entries" button to begin creating a new company.

Step 2: Enter Company Details

On the "New Entries" screen, fill in the required details for the company:

  • Company ID: Enter a unique identifier for the company, such as COMP001.
  • Company Name: Provide the full name of the company, for example, ABC Corporation.
  • City: Enter the city where the company is located, such as New York.
  • Country: Specify the country code, for example, US.
  • Currency: Enter the default currency for the company, such as USD.
  • Language: Set the default language for the company, for instance, EN.

After entering the details, save your entries by clicking the "Save" button.

Step 3: Assign Company to a Company Code

Once the company is created, the next step is to assign it to a company code. The company code represents a legal entity for which financial accounting is carried out.

  • Navigate to Enterprise Structure > Assignment > Financial Accounting > Assign Company Code to Company.
  • Select the company code you want to assign and link it to the company you created.
  • Save the assignment.

Step 4: Verify the Company Setup

To ensure the company was created successfully:

  • Navigate back to the "Define Company" screen.
  • Search for the company using its unique identifier.
  • Review the details to verify accuracy.

Examples of Company Creation

Example 1: Creating a Manufacturing Company

Details:

  • Company ID: MANUF001
  • Company Name: Global Manufacturing Ltd.
  • City: Berlin
  • Country: DE
  • Currency: EUR
  • Language: DE

In this example, the company represents a manufacturing entity based in Germany.

Example 2: Creating a Retail Company

Details:

  • Company ID: RETAIL001
  • Company Name: Urban Retail Co.
  • City: London
  • Country: GB
  • Currency: GBP
  • Language: EN

This example demonstrates the setup for a retail business operating in the United Kingdom.

Conclusion

The creation of a company in SAP FICO is a fundamental step in the configuration process. By defining the company and assigning it to a company code, you establish the foundation for accurate financial management and reporting. Following these steps ensures a seamless and efficient setup tailored to your organization's structure.




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