Controlling area and Company code relationship in SAP

Company code and controlling area relationship in SAPCompany code (CC) is one of the organizational units in sap which is linked to all other modules for transfer of financial documents to SAP FI module. In the case of CO module, controlling area is the highest organizational unit to which CCs are assigned and due to this assignment financial transaction from SAP FI module gets transferred to SAP CO module.

Company codes are assigned to controlling area (CA) through transaction code OKKP. While defining CA, you can set the relationship as one to one i.e. one CC can be assigned to one CA or you can set one to many i.e. one CA assigned to more than one CC.

If more than one company codes are assigned to one controlling area then all the financial transactions related to those CCs are collected under one controlling area and reported under that. Financial transactions are not posted for a controlling area. It only posted for a CC and collected under a controlling area.

Assignment of more than one company code to one controlling are is called cross company code cost accounting in which cost can be assigned within controlling module across company code i.e. cost from one CC can be assigned to another CC in controlling module.

To assign more than one company code to controlling area one need to remember following points;

  1. Chart of accounts for all the company code should be consistent i.e. operating chart of accounts of all the company code assigned to a controlling area should be same.
  2. Fiscal year variant must be same for all the company codes.

After such assignment at the end of the period you need to close all the company code’s posting periods under one controlling area at the same time instead of closing separately one after other.

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