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(The reader is suggested to see my previous article covering some basics in SAP on the link ERP (SAP) Basics before reading this write-up.)

I’ll try to work my way systematically on configuration.  

To begin with, Configuration refers to the basic settings that should be done for recording the transactional data in SAP. Without the configuration the data cannot be captured into the system.  

Let’s get the ball rolling.

Company Configuration includes,

1. Define Company:

Meaning of Company (in SAP): A company in SAP represents a unit for which individual Profit & Loss A/c and Balance Sheet can be made based on the relevant Act prevailing in the country.

Transaction Code to define the company is OX15.


{Log in << type “spro” (in command line) -> Execute Project (screen is displayed) << click "SAP Reference IMG -> List of items included FI & CO are displayed (this screen is called the Enterprise Structure)  

Above path could be written as: IMG -> Financial Accounting  or   IMG -> Enterprise Structure}

Path for Defining the company is: IMG -> Enterprise Structure -> Definition ->Financial Accounting -> Define Company

Screen shots (in SAP)


Define Company

Click “Define Company” and the following screen appears    


Click “New Entries” to see the screen as under,


Enter the details in each field.  Then click to save the entry.

The dialog box as below is shown to confirm that the entered data has been saved.


Click “ok”.  

2. Creating the Company Code:

Meaning of the Company Code:

a. A company could have one or more company codes.

b. A company code represents a unit in Financial Accounting of SAP for which a set of accounts can be made along with all the supporting documents. The accounts so prepared can be used for external reporting.

Tr code is OX02.

Path: IMG -> Enterprise Structure -> Definition -> Financial Accounting -> Edit, copy, delete, check company code.    

Screen shots (in SAP)

The above path shall display the screen as under,  


Click “Edit, Copy, Delete, Check Company Code” and the display shall be: