In SAP a company and company code are defined separately.
SAP defines a company as the smallest organizational unit for which legal financial statements can be prepared. A Company can contain one or more company codes,but they must use the same chart of accounts and the same fiscal-year structure.
The company code is the smallest organization unit of external accounting for which a complete,self contained bookkeeping system can be replicated.This include the entry of all accounts posting and creation of a complete balance sheets and profit and loss statements,
Company code is defined in the system by means of four character alphanumeric key unique in the client
T-code : OX15
IMG Path :
1) Click on new entries button
2) Enter the Six digit code in the Company ( ex: FTGRP)
3) Enter the Description in the Company name ( ex: Firstech group of companies)
4) Enter the Address details ,Country and Currency details.
5) Save the entries
Created company entries listed down.