What is cross company code controlling in sap

What is cross company code controlling in sapControlling area is the starting point of your SAP-CO module configuration. While defining controlling area we need to assign company codes to it. After such assignment, financial transactions will flow from company codes (CC) to controlling area (CA). There can be two types of assignment between a CC and CA;

  • One CC to One CA
  • More than one CC to one CA

Like mentioned above you have options of assigning either one CC to one controlling area or more than one CC to one controlling area. If you have selected the first option then it’s called one to one assignment and the second option is called one to many assignment. Assignment of one CC to many CA is called cross company code controlling.  

In cross company code controlling, sap collects all financial transactions from the CCs assigned to a controlling area (CA) and transfer it the CA in SAP-CO module. Within the CA we can assign or reassign costs internally even though it belongs to different company codes. For this reason it is called cross company code controlling i.e. across company code you can assign or reassign costs.

However in cross company code controlling followings things are to be taken into consideration;

  • Period end closing for all CCs assigned to a CA should be done at the same time in SAP-CO module.
  • Operating chart of accounts for all the company codes assigned under one controlling area must be same. CCs with different operating chart of accounts can not be assigned under one CA.
  • Like operating chart of accounts, fiscal year variant also be the same for all CCs assigned to CA.

You can use OX19 or OKKP to define controlling area or to know more on this. Assignment of CC to CA can be done with OKKP.

Editorial Staff at Yourfinancebook is a team of finance professionals. The team has more than a decade experience in taxation and personal finance.