Hello Murthy
Hello, I am having some understanding issue in two of SAP FI’s module terms, “Client” and “Company” at some places it is mentioned that in an organizational structure, “Client” is a corporate group and it can contain one or more company codes, whereas, at some other places it is mentioned that the, “Company” is a corporate group and it can have one or more company codes. So what it is actually, is it the Client or the Company? Or both terms are inter-changeable? Moreover SAP Manual describes two aspects of a client, “Technical view” and “Commercial view” having a complete set of independent master data and a corporate group respectively. Your help in this regard is much appreciated. Thanks
Regards,
Mohsin Nabeel
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Hi Mohsin,
Let me explain the difference between client & Company, and a Company code
Client: Client is a part of Landscape of SAP systems which is setup for development/Configuration, Testing, and Production. These clients are setup as a separate boxes (which consists all the master, transactional data, front end to execute various t codes, and back end to perform the configuration of the system as per the requirements of the organization which is going to implement SAP
Initially configuration/development will be done in Configuration/development client (box), moved those changes to Testing client (by way of transport requests) for testing, and once testing is completed successfully, all the changes finally moved to production client.
Company/Company code: Company is called a Corporate group (say Wal-Mart which has its branches in each country, and each branch will have number of stores in that country.
So here Company is called the Wal-Mart Inc
And the Company code is the Branch which is located in each country (with its own currency and a set of GL accounts as per its country requirements.)
Finally the company will report its financials by consolidating all the company codes related data in a Group currency (say US dollars as the Wal-Mart Company is located in USA)
Hope the above explanation clears your doubts.
With Regards
Murthy Pillutla
Saturday, August 10, 2013
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