We can assign more than one company code to the company but all company codes within a company must have the same chart of accounts and the same financial year, though they all can have different local currencies.

The definition of company code is an independent organizational unit that has its own set of accounting books and obligated to prepare a financial statement under the statute of law. The definition of the company code is mandatory.

A company is a unit to which financial statements are created and can have one too many company codes assigned to it. A company is equivalent to a legal business organization.