What is a 'Company Code' and how is this different from a 'Company' in SAP ?

A Company Code in SAP is the smallest organizational unit for which you candraw individual Financial Statements (Balance Sheet and Profit & Loss Account) foryour external statutory reporting. It is denoted by a 4-character alphanumeric code.The creation of a Company Code is mandatory; you need to have at least one Company Code defined in the system, for implementing FI.

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