There is a company field in the company code global settings. The SAP R/3 help says that it is used for consolidation. You can use the group COA to do the same. What is the significance of this field.

A company is an organizational unit that is generally used in the legal consolidation module to roll up financial statements of several company codes. A company may have one or more company codes. If you are going for consolidation, you need to enter the six-character alphanumeric company identifier that relates to company codes for which you are consolidating accounts. Company code within a company must use the same COA and fiscal year, and for consolidation purpose, you use the group COA where you like the operating COA by entering the general ledger account number of the group COA in the general ledger account of the operating COA.

In the SAP system, consolidation functions in financial accounting are based on companies. A companies comprises one or more company codes. For example, company A has four company codes, located in different states and/or countries. When company A wants to consolidation the accounts, it will give the common list of accounts, which in turn calls the group COA. The group COA is used to define and list the general ledger account uniformly for all company codes.

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