Smallest organizational unit of external accounting for which a complete, self-contained set of accounts can be created. This includes the entry of all transactions that must be posted and the creation of all items for legal individual financial statements, such as the balance sheet and the profit and loss statement.
The definition of the company code organizational unit is obligatory .
SAP recommends that new Company Codes be created by copying from the country standard, or a customer specific CoCd for the relevant country.