There is a difference between Company Code and Company. Company is mandatory, but it is necessary for consolidation. In most cases you will have one to one relationship between company code and company, but there will be cases where you have one legal entity which is operating in different countries. Every country will have different requirements for external reportin, therefore it would be necessary to create company code for every country and assign them to the Company ID for consolidation purposes.
IMG path: Eterprise Structure –> Definition –> Financial Accounting –> Define Company
Click on New Entries.
Fill the necessary fields and hit save.
Assign the necessary Transport Request.