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    <title>SAP on Athul Kallungal</title>
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      <title>How to create a Company and Company Codes in SAP</title>
      <link>https://athulkallungal.com/en/posts/sapcompanycreation/</link>
      <pubDate>Tue, 02 Jun 2026 00:00:00 +0200</pubDate>
      
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      <description>So the first question is: what is the difference between a company and a company code?
A company is an organization that can be seen as a legal entity. The most important detail is that a company can have multiple company codes.
To understand this better, let&amp;rsquo;s look at a real-world example.
Imagine Volkswagen Group. It is a German company but has operations in several countries. While all of its subsidiaries belong to the same organization, each country must maintain its own accounting records and comply with local legal and tax regulations.</description>
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