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What is Controlling area? In SAP, Controlling area is an organizational element which is responsible for management of costs and profits. The relation between controlling area to company code is one to many relationship, so one or many company codes can be linked to a single controlling area.
- Maintain Profit Center Standard Hierarchy
The following SAP CO tutorial guide you how to define profit...
- Define Cost Center Categories
New cost center categories can be created in SAP controlling...
- Create Secondary Cost Elements in SAP
You can create secondary costs elements in SAP controlling...
- Define Cost Center Standard Hierarchy
You can define standard cost center hierarchy in SAP using...
- Activate Cost Center Accounting
Step 4 : – On change view basic data overview screen, click...
- Create Primart Cost Elements
Settlement: – This category will be used for the settlement...
- Create Cost Element Group
Step 2 : – Now a screen open for entering the controlling...
- Define Profit Center Group
Maintaining all the profit centers of controlling area in...
- Maintain Profit Center Standard Hierarchy
The level of detail provided by the Controlling component enables you to track specific information for cost monitoring, business decisions and sales control. For example, the Controlling component contains subdivisions such as cost centers and internal orders in addition to accounts.
You can display or change the current controlling area in any transaction in Controlling. Choose Extras → Set CO Area A dialog box appears displaying the current controlling area. You can overwrite it if you want.
The controlling area is an organizational unit within an enterprise for which a complete cost accounting can be performed within a closed system. A controlling area may contain one or more company codes which can operate in different currencies, if required.
The following SAP CO tutorials guides you how to maintain controlling area settings step by step. The controlling area settings enables the configuration of standard hierarchy, profit center reporting currency type, Valuation views ALE distribution method and controlling indicators.
Controlling Area: Used to manage costs and revenue. Chart of Accounts: Uses the same set of accounts for all company codes, which makes cross company code management accounting possible. Company Code: Used to produce financial statements.
Discover the importance of the Controlling Area in SAP for managing costs and profits. Learn how to configure the organization structure and maintain CO areas.
