Company Code and Controlling Area Relationship in SAP

While defining controlling area with transaction code OKKP, we have to specify company code and controlling area relationship.

SAP has provided two option to specify the relationship of controlling area with company code;

  • 1:1 – One company code assigned to Once controlling area
  • 1:Many – Cross Company Code

Company Code and controlling area relationship in SAP can be one to one i.e. one controlling area will be assigned to one company code or else it can be defined as a cross company code i.e. relationship will be one to many (more than one Company Code will be assigned to a controlling area in SAP).

Company Code and Controlling Area Relationship in SAP

To define the relationship as one to one in SAP, we need to select it in the setting of controlling area screen (transaction code: OKKP) or else you can select the other option as one to many.

If company code and controlling area relationship in SAP is defined as one to one then only one company code can be assigned to the controlling area. Transaction posting in to the assigned company code will get reflected directly in the controlling area.

If it’s defined as one to many then transactions from different assigned company codes will flow to controlling area which need to be reconciled periodically.

Profit center assignment has to be given special attention as profit center in SAP by default will be assigned to all the company codes under a controlling area. Similarly cost centers are to be created company code specific to accumulate cost related to a particular legal organization.

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