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 a Company Code, is a self-contained cost accounting entity for internal reporting purposes. The controlling area is assigned to one or more Company Codes to ENSURE that the necessary transactions, posted in FI, are transferred to controlling for cost accounting PROCESSING.

• 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.

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 a Company Code, is a self-contained cost accounting entity for internal reporting purposes. The controlling area is assigned to one or more Company Codes to ensure that the necessary transactions, posted in FI, are transferred to controlling for cost accounting processing.