The first step is to create a company. This is typically done using IMG (implementation guide). IMG is accessed using T-code = SPRO
Some of the T-codes used OX02, OX15 etc.
T-code OX02 is for company code set-up. This creates the “legal entity”. Usually company creation and set-up is done by Finance side, not HR side.
If we click on “New Entries”, it will show following screen where we can set up new company code.