Company Code in SAP

How to Define Company Code in SAP

In this SAP tutorials we are going to define company code “TK01″(TK Software limited) in SAP
system.

What is Company Code?

Company code is an independent organizational unit which is registered under companies act
1956. Under company code you can generate individual financial statements like profit & loss
account and balance sheets.

 The definition of company code in SAP is mandatory.

 It is mandatory to create at least one company code for implementing the SAP financial
accountingmodule.
You can define company code in SAP by using navigation method or transaction code.

 Navigation: – SPRO – IMG – Enterprise Structure – Definition – Financial Accounting –

Edit Copy, Delete, Check company code
 Transaction code: – OX02
 Database Table: – T880
Step 1) Enter transaction code “OX02” in the SAP commend field and enter to continue.

Step 2) On change view “Company Code”: Overview screen, displays with the list of company
codes with their names. Click on “New Entries” button to create new company code as per
organizational requirements.

Step 3) On new entries company code screen, update the following details.
 Company code: – Enter 4 digits alphanumeric code that identifies company in SAP
 Company name: – Update the name of the company
  City: – Enter the name of city in which the company is located.
 Country: – Enter the name of country. Press F4 for possible entries and you can select the
code from the list.
 Currency: – This currency is also called as home currency or local currency.
 Language: – Our default language key: English (EN).

Step 4) After updating all the required details, click on save button to save the configured data.
Now the system prompts the another screen to update the full address of company. Update all the
required address details of company and press enter to save the data.
Step 5) Now you get the transport request number, save the request.

Successfully company code “TK01” is created in SAP system.

 How to Assign Company Code to
Company in SAP
How to Assign Company Code to Company in
SAP
In this SAP tutorial you will learn procedure to assign company code to company in SAP. After
successfully creation of company code and company in SAP, you need to assign company code
company in SAP system.
Why Assignment
The link between company and company code is established through a assignment of company
code to company.

Configuration steps
You can assign by using one of the navigation method or transaction code.

 Navigation: – SPRO – IMG – Enterprise Structure – Assignment – Financial Accounting

– Assign company code to company
 Transaction code : – OX16
Step 1) Enter Transaction code “OX16” in the SAP command field and press enter to continue.

Step 2) On change view “Assign company code -> Company”:Overview screen, click on
position button and give your company code key. Now your company code displays at the
window.
Step 3) Now update your company key “TKART” in the given field.

Step 4) After assignment of company code to company, click on save button and save the
configured data.

Successfully we have assigned company code “TK01” to company code “TKART” in SAP
systems.
 SAP HR – Define Personnel Area in SAP
What is Personnel Area?
Personnel area in SAP represents as a geographical location of an organization, where it can not
be a department.

Technical field name of personnel area in SAP is “BTRTL”

Navigation
SAP R/3
Role Menu Define personnel area

Table T500P

SAP IMG SPRO => SAP Reference IMG => Enterprise Structure => Human Resource Management (HR
path Personnel Areas.

Step by step configuration steps of personnel area in SAP: –

Step 1 :- Execute tcode “SPRO” from command field.

Step 2 :- From display IMG screen, follow the IMG path as shown below image and click on
IMG activity personnel areas.
Step 3 : – From choose activity screen, you will get display with two options i.e.
1. Copy, delete, check personnel area
2. Personnel areas.
If you like to copy, delete or check existing personnel area, choose first option and do the
required actions. To new personnel area in SAP, double click on the “personnel areas”.
Step 4 : – From change view personnel areas overview screen, you can create new personnel
area in SAP either using new entries option or copying from existing personnel area. Click on
new entries button to create new personnel area in SAP HRM.

Step 5 : – On new entries personnel areas screen, enter the following details.
1. Personnel area : – Enter the new key that identifies as personnel ares in SAP, you are
allowed to enter up to 4 digits alphanumeric key.
2. Description : – Update the description of personnel area.
 3. Personnel areas : – Under personnel areas, you are required to update the address details
of personnel area. The required fields to update are House number, PO box, Postal code,
Country key, region, country code and city code.

After maintaining all the required details of personnel area in SAP, click on save button. Now a
window opens for updating detailed address information of personnel area. Update the required
address details and save the updated address data.

Successfully we have defined personnel area in SAP HCM

 SAP HR – Define Personnel Subarea in
SAP
What is Personnel Subarea ?
Personnel subarea in SAP is a further division of personnel area. Personnel subarea can be a
department or branch office based on the company business process.

Technical field name of personnel subarea is “BRTL”.

Navigation
SAP R/3 Role
Menu Define Personnel Subareas

Transaction Code SPRO

SPRO => SAP Reference IMG => Definition => Human Resources
SAP IMG Path Management => Personnel Subareas.

Configuration values
Personnel subarea Description

TKBG Bangalore -Subarea

TKHY Hyderabad – Subarea

TKVZ Vizag – Subarea

How to define personnel subarea in SAP

Refer below step by step configuration procedure for creation of new personnel subarea in SAP
system.

Step 1 : – Execute Tcode “SPRO” and SAP command field.

Step 2 : – From display IMG screen, follow the menu navigation and choose img activity
“personnel subareas”.

Step 3 : – A choose activity window appears on the screen with the two options i.e.
1. Copy, delete, check personnel subarea
2. Create personnel subareas.
If you like to create new personnel subarea in SAP, double click on the option “create personnel
subareas”. To copy or delete existing personnel subarea, choose the first option for any changes
as per your requirements.
A popup window determine work area entry opens, enter the personnel area key in the field
work area and press enter.
Step 4 : – From change view personnel area/subarea overview screen, click on new entries
button to create new personnel subarea in SAP.
Step 5 : – In the next screen, personnel subarea new entries screen, update the following details.
 Personnel subarea :– Enter the four digits key that identifies as personnel subarea in SAP
 Pers. subarea text : – Enter the description of personnel subarea.
After maintaining personnel subareas in SAP, click on save button and save the details. Now you
get a message as “Data was saved”.

SAP HR – Define Employee Group in SAP

What is an Employee group?
An Employee group in SAP specifies as a category of employment, for e.g. permanent
employees, contract employees, trainees, etc. Employee groups and employee subgroups are
considered as personnel structure which is a part of enterprise structure.
Field name of employee group in SAP is “PERSG”

Navigation
SAP R/3 Role
Menu Define Employee groups

Table T503

SAP IMG SPRO => SAP Reference IMG => Enterprise Structure => Human Resource
Path Management (HRM) =>Employee Groups.

How to define employee groups in SAP

Refer below step by step configuration procedure for creating a new employee group in SAP.

Step 1 : – Execute Tcode “SPRO” and SAP command field.

Step 2 : – From display IMG screen, follow the navigation menu as below image and choose
IMG activity “Employee groups”.
Step 3 : – On change view employee groups overview screen, the system displays a list of
defined employee groups in SAP. To create new employee group in SAP, choose new entries
button and create new employee groups as per the requirements of an organization.

Step 4 : – On new entries employee groups screen, enter the following details.
 Employee group : – Enter a key that defines as employee group in SAP. You are allowed
to enter a single digits key for new employee group key in SAP.
 Name of employee grp : – Update the descriptive name of an employee group.
After maintaining all the required employee groups in SAP as per requirements of an
organization, choose save button and save the details. Now you a message as “data was saved”.

Successfully we have created new employee group in SAP HR.

 SAP HR – Define Employee Subgroup in
SAP
What is an employee subgroup in SAP?
Employee subgroup is further category of an employment. For e.g. Regular employees are
further categorized into regular full time employees and regular part time employees.

Technical field name of employee subgroup in SAP is “PERSK”

Navigation
SAP R/3 Role
Menu Employee Subgroups

Transaction
Code SPRO

SPRO => SAP Reference IMG => Definition => Human Resources
SAP IMG Path Management => Employee Subgroups.

Configuration Values
We are going to create the employee subgroups in SAP as per below values

Employee subgroup Name of EE subgroup

TE Trainee

EX Executive

AS Associate

TC Consultant

FS Full Shift

PT Part Time

How to define employee subgroup in SAP

Refer below step by step configuration procedure for creation of new employee subgroup in SAP
HRM.
Step 1 : – Execute tcode “SPRO” from SAP command field.

Step 2 :- From display IMG screen, follow the navigation menu as shown below image and
double click on img activity “Employee subgroups”.

Step 3 : – In next screen, a choose activity with two options displays for maintaining the
employee subgroups in SAP.
1. Edit employee subgroup environment
2. Define employee subgroup.
Double click on employee subgroup option to define new employee subgroup in SAP as per
requirements of an organization enterprise structure.
Step 4 : – From change view employee subgroups overview screen, choose the option new
entries for creation of new employee subgroup in sap.

Step 5 : – On new entries employee subgroup SAP screen, enter the following details.
 Employee subgroup : – Enter the 2 digits key that defines as employee subgroup in SAP.
  Name of EE subgroup : – Enter the name of an employee subgroup that shows in SAP
system.

Maintain all the required employee subgroups in SAP as per requirements an organization
enterprise structure, choose save button and save the details. Now you get a message as “Data
was saved”.

Successfully we have created new employee subgroups in SAP HR.

This tutorial explains step by step procedure assignment of personnel area

to company code in SAP.

How to assign personnel area to company code

in SAP
The link between personnel area and company code is established through the
assignment of company code to personnel area in SAP.
For assignment, perform the following configuration steps.
Navigation
SAP R/3 role
menu Assignment of personnel area to company code

Transaction
Code SPRO

SPRO => IMG => Enterprise Structure => Assignment => Human Resource
SAP IMG path Management (HRM) => Assign personnel area to company code.

Step 1 : – Execute tcode “SPRO” on command field as shown below.

Step 2 :- Choose “Display SAP Reference IMG”

Step 3 :- On display IMG screen, follow the navigation menu Assignment >
Human Resource Management > Assign Personnel area to Company code.
Step 4 : – On change view “Assignment of personnel area to company code”
overview screen, click on position button and enter the personnel area key in
the entry field, press enter ? to continue. Now you your personnel area key
displays on top of the screen, so that you easily assign company code to this
personnel area in SAP.
Step 5 : – Now enter the company code “TK01” in the given field company
code, country grouping key (Press F4 for list of available country grouping
codes) and press enter..

Click on save button and save the configured assignment details.

Successfully we have assigned personnel area to company code in SAP HR.

 SAP HR – Assign Employee Subgroup to
Employee Group
This tutorial explain step by step procedure assign employee subgroup to employee group in
SAP.

The link between employee subgroups and employee groups are established through the
assignment of employee subgroups to employee groups in SAP.

Navigation
SAP R/3 Role
Menu Assign employee subgroup to employee group

Transaction
code SPRO

SPRO => IMG => Enterprise Structure => Assignment => Human Resource
SAP Path Management (HRM) =>Assign employee subgroup to employee group

How to assign employee subgroup to employee

group
Perform the following configuration steps for assignment employee subgroup to employee group
in SAP.

Step 1: – Execute transaction code “SPRO” on SAP command field as shown below image.

Step 2 : – Double click on “Display SAP Reference IMG”

Step 3 :- From display IMG screen, follow the navigation path as Assignment > Human
Resource Management > Assign employee subgroup to employee group.
Step 4 : – On change view country assignment for employee group/subgroup overview screen,
click on new entries button for assignment of employee subgroups to employee groups as per
requirements of HR enterprise structure.

On new entries Employee group and subgroup assignment screen, enter the following details.

 EE group :– Enter the employee group key in the field EE group.

 EE Subgroup : – Enter the employee subgroup key for assignment to employee group.
 Choose the countries that you like activate this assignment configurations.

Similarly assign other employee groups to employee subgroups as per HR enterprise structure.
Successfully we have assigned employee group to employee subgroup in SAP HR.