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Chapter 1 ■ Customizing Organizational Structure in SAP ERP
In practice, global corporations have operations in several countries across the globe and it is often
mandatory for global corporates by law to meet legal reporting and disclosure requirements in each country
of their operation. Every country has its own accounting regulations with which companies operating within
their border must comply. SAP ERP is beneficial in this aspect, because it allows organizational units in
the same corporate organization functioning in various countries to function independently for reporting
purposes. This enables you to meet specific tax and other legal reporting requirements by allowing you to
use a separate unique company code for a company in each country.
In the SAP ERP when customizing company code, you define the following items:
• Company name
• Country
• Language key
• Currency
In addition, a company code must be assigned at least one operational or primary chart of accounts
needed for business processes in the company code. Occasionally, a group chart of accounts may be needed
for controlling purposes and a country-specific chart of accounts may be needed to meet country-specific
reporting requirements. A group chart of accounts is optional. You will learn about chart of accounts in
detail in Chapter 2.
Let’s Start Customizing
When you log on to SAP ERP, the SAP Easy Access screen is displayed (Figure 1-3).
Figure 1-3. Select Tools to commence customizing
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