Multiple legal entities one company code

Dear Gurus,
We are currently in detail design of an ERP system using SAP 6.0.   We have multiple legal entities and we are trying to determine if each legal entity should also be a company code in SAP. Has anyone setup SAP using a Company Code that was not a legal entity? For example multiple legal entities as one company code or one legal entity as multiple company codes. What are the pros and cons?
Thank you.

multiple legal entities as one company code is POSSIBLE.
one legal entity as multiple company codes is NOT possible.
However, there may be different criteria to create a company code. The best criteria is if your entity is in different country and need to present your books of accounts to stakeholders, the go with a separate company code.
If you have multiple legal entities, which are in the same country and there is no issue if you present the books of accounts of all those legal entites in a single set of accounts, then go with a single company code, this would be easier and less maintenance costs in the future.
If there is no legal requirement to create each legal entity as a separate company code, then avoid it.
Regards,
Ravi

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