Deference between the company and company code

Question

Accepted Answer

The company represents the legal entity, while the company code represents the operational unit within the company.

A company is the highest level of organizational structure in SAP, representing a legal entity.
A company code is a sub-division of a company and represents an operational unit within the company.
A company can have multiple company codes, each with its own set of books and financial statements.
Company codes are used for financial accounting and reporting purposes.
Company codes are assigned to specific countries or regions and can have their own currency, chart of accounts, and fiscal year variants.
For example, a multinational company may have a company in the United States (US) with a company code for its US operations, and another company in Germany with a company code for its German operations.

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