Company Code and Controlling Area Relationship in SAP

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

SAP has provided two option to specify the relationship;

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

CC and CA relationship in SAP can be one to one i.e. one CA will be assigned to one CC or else it can be defined as a cross company code i.e. relationship will be one to many (more than one CC will be assigned to a CA 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 CC can be assigned to one CA. Transaction posting in to the assigned CC will get reflected directly in the CA.

If it’s defined as one to many then transactions from different assigned CC will flow to CA 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 CC under a CA. Similarly cost centers are to be created CC specific to accumulate cost related to a particular legal organization.

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