For a company based in France with a permanent establishment in Switzerland where financial statements are required by law, the necessary organizational unit to create is:

Company code: A company code represents an independent accounting unit within SAP. It is the smallest organizational unit for which a complete, self-contained set of accounts can be drawn up for purposes of external reporting. Creating a separate company code for the Swiss establishment ensures that financial transactions are recorded in compliance with local legal requirements and financial statements are generated accordingly.

By establishing a company code for the Swiss location, the organization ensures compliance with Swiss financial regulations and accurate financial reporting.

References

[28:1†1709119988077.pdf]

drawn up for purposes of external reporting. This includes recording all relevant transactions and generating necessary financial statements.

Here are the steps to create a company code in SAP S/4HANA:

Define Company Code:

Transaction Code: OX02

Path: IMG -> Enterprise Structure -> Definition -> Financial Accounting -> Edit, Copy, Delete, Check Company Code.

Enter a four-character alphanumeric code for the new company code and fill in the necessary details such as company name, city, country, currency, and language. Save the entries.

Assign Company Code to Company:

Transaction Code: OX16

Path: IMG -> Enterprise Structure -> Assignment -> Financial Accounting -> Assign company code to company.

Select the company code and assign it to the appropriate company.

Define Additional Settings:

Fiscal Year Variant: Define and assign a fiscal year variant suitable for Switzerland if it differs from your main fiscal year variant (Transaction Code: OB29 and OB37).

Field Status Variant: Assign field status variants to your company code to control the data entry for different fields (Transaction Code: OBC4 and OBC5).

Open and Close Posting Periods:

Transaction Code: OB52

Define the periods during which posting is allowed for the company code.