Monday, 14 May 2012

What is a 'Controlling Area'? How it is related to Company Code?

A Controlling Area is the central organizational structure in controlling' {CO), and is used in cost accounting. The controlling area, as in the case of Company Code, is a self contained cost accounting entity for internal reporting purposes. The controlling area is assigned to one or more Company Codes, so as to ensure that the necessary transactions, posted in FI, are transferred to controlling for cost accounting processing.
Figure:: Controling Area Details
       
•    One controlling area can be assigned one or more Company Codes
•    One chart of accounts can be assigned to one or more controlling areas
•    One or more controlling areas can be assigned to an operating concern
•    One Client can have one or more controlling areas

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