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If you have defined business areas, the transaction figures for the G/L accounts are managed separately for internal evaluation purposes.
You can therefore create internal financial statements for business areas.
A company code could also be a separate, but not independent, commercial place of work.
This is necessary for example, if the place of work is actually situated in a different country and evaluations therefore have to be carried out in the appropriate national currency and in accordance with other tax and legal specifications.
If you want to create financial statements for business areas, you must make sure that the Business area field is ready for input in all the line items.
To carry forward balances, you can use separate programs for G/L accounts, and for customer and vendor accounts.
You must define at least one company code before implementing the Financial Accounting component.
The business transactions relevant for Financial Accounting are entered, saved, and evaluated at company code level.
You usually create a legally independent company in the SAP System with one company code.
However, you can also define a company code according to other criteria.