What is the difference between company and company code?
A company is the organizational unit used in the legal consolidation module to roll up financial statements of several company codes. The Company Code is the smallest organizational ! unit for which a complete self-contained set of accounts can be drawn up for purposes of
external reporting.
How many chart of accounts can be attached to a company code?
One or more Operative Chart of Accounts can be assigned to a company code.
A
COA must be assigned to a company code. This COA is the operative COA
and is used in both FI and CO. One Chart of Account can be assigned to
many Company codes i.e., Multiple company codes can either share the
same or have separate COA. But a company code (Country specific Company
code or International Company code) can have a country specific COA
also along with Operative COA. The link between the regular COA and the
country COA appears in the alternate number field of the G/L master
record.
Eg: If a company’s subsidiaries are located in both US
& Mexico. We need to configure 2 Company codes – one for US and
another for Mexico,for eg U100 and M100. The same way we create 2 COA’s
one for US & one for Mexico, USCA and MXCA. Mexico has different
govt reporting requirements than the US so we will need to define a
company code specific to Country Mexico and also create a country
specific COA to be used, in addition to normal COA. In tcode OBY6(Comp
Code Global Parameters) of CC M100 we define normal COA i.e.,USCA in
Chart of Accounts field and MXCA in Country Chart/Accts field.
What are substitutions and validations? What is the precedent?
Validations are used to check settings and return a message if the prerequisite check condition is met.
Substitutions are similar to validations; they actually replace and fill in field values behind the scenes without the user’s knowledge unlike validations that create on-screen msgs to the user.
What is a controlling area?
The Controlling Area is the central organizational unit within CO module. It is representative of a contained Cost Accounting where costs and revenues can be managed.
Define relationship between controlling area and company code?
A controlling area may include one or more company codes which must use the same operative chart of accounts as the controlling area. A Controlling Area can contain multiple company code assignments but a single company code can be assigned to only one controlling area.
A company is the organizational unit used in the legal consolidation module to roll up financial statements of several company codes. The Company Code is the smallest organizational ! unit for which a complete self-contained set of accounts can be drawn up for purposes of
external reporting.
How many chart of accounts can be attached to a company code?
One or more Operative Chart of Accounts can be assigned to a company code.
A
COA must be assigned to a company code. This COA is the operative COA
and is used in both FI and CO. One Chart of Account can be assigned to
many Company codes i.e., Multiple company codes can either share the
same or have separate COA. But a company code (Country specific Company
code or International Company code) can have a country specific COA
also along with Operative COA. The link between the regular COA and the
country COA appears in the alternate number field of the G/L master
record.
Eg: If a company’s subsidiaries are located in both US
& Mexico. We need to configure 2 Company codes – one for US and
another for Mexico,for eg U100 and M100. The same way we create 2 COA’s
one for US & one for Mexico, USCA and MXCA. Mexico has different
govt reporting requirements than the US so we will need to define a
company code specific to Country Mexico and also create a country
specific COA to be used, in addition to normal COA. In tcode OBY6(Comp
Code Global Parameters) of CC M100 we define normal COA i.e.,USCA in
Chart of Accounts field and MXCA in Country Chart/Accts field.
What are substitutions and validations? What is the precedent?
Validations are used to check settings and return a message if the prerequisite check condition is met.
Substitutions are similar to validations; they actually replace and fill in field values behind the scenes without the user’s knowledge unlike validations that create on-screen msgs to the user.
What is a controlling area?
The Controlling Area is the central organizational unit within CO module. It is representative of a contained Cost Accounting where costs and revenues can be managed.
Define relationship between controlling area and company code?
A controlling area may include one or more company codes which must use the same operative chart of accounts as the controlling area. A Controlling Area can contain multiple company code assignments but a single company code can be assigned to only one controlling area.
