A ‘Company Code’ in SAP is the smallest organizational unit for which you can draw individual Financial Statements (Balance Sheet and Profit & Loss Account) for your external statutory reporting. It is denoted by a 4-character alphanumeric code.
The creation of a Company Code is mandatory; you need to have at least one Company Code defined in the system, for implementing FI.
You may define a Company Code by copying from an existing one (Copy, Delete, Check Company Code Option). Transaction code is EC01.
You may also define the Company Code a new from scratch.