What is controlling area in SAP with example?

Organizational unit in an organization that represents a closed system used for cost accounting purposes. A controlling area may contain one or more company codes, which can operate in different currencies, if required. The company codes within a controlling area must all use the same operational chart of accounts.

How do you maintain control area in SAP?

Maintain Controlling Area Definition: – Enter the transaction code SPRO in the SAP command field and click Enter to continue. Click on SAP Reference IMG. Expand SAP Customizing Implementation Guide → Controlling → General Controlling → Organization → Maintain Controlling Area . Click on Execute.

What is the purpose of controlling area?

The controlling area is the basic organizational unit in Management Accounting. A controlling area is a closed entity used for cost accounting. You can allocate costs only within a controlling area. These allocations cannot affect objects in other controlling areas.

How do I set controlling area currency in SAP?

Use currency type 10 to specify that the company code currency is the same as the controlling area currency. You can use the company code currency for the controlling area if: The assigned company code uses the group currency as a parallel currency, and.

Why do we need control area in SAP?

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.

How is a controlling area set?

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.

How do you assign a cost center to a controlling area in SAP?

How to activate cost center accounting in controlling area. Transaction code : – OKKP. IMG path : – SPRO >> IMG >> Controlling >> Cost center accounting >> Activate cost center accounting in controlling area. Step 1 : – Enter SAP transaction code “SPRO” in the SAP command field and enter.

How many control areas are there in SAP?

one controlling area
At a time we can set only one controlling area in SAP and also cross company code transaction not possible with multiple controlling area.

Which currency type can be selected for controlling area?

The hard currency can be used as the controlling area currency. In this case the company code currency MXP is the object currency. You can use the index-based currency for the controlling area if: The assigned company code uses the index-based currency as a parallel currency, and.

How do you find control area?

Go back to main controlling area screen “change view basic data overview, and choose controlling area “TK01 and double click on assignments of company codes. On change view “Assignment of company code(s) overview screen, click on new entries button for assigning the company code to controlling area in SAP.

How do you assign a cost center to a control area?

What is controlling area and cost center in SAP?

The controlling area is the highest organizational level within CO. It must exist before Cost Center Accounting (CCA) can be used. A controlling area will be created on a one-to-one basis with the company code created in FI. This does not facilitate cross-company code accounting in CO.

What is credit control area sap?

A credit control area is an organizational unit for specifying and controlling customer credit limits. A credit control area can include one or more company codes. It is not possible to divide a company code into several credit control areas.

How do you find controlling currency area?

Maintain Controlling Area Definition –

1. Controlling Area – Specify the 4-digit alphanumeric Control Area Code.
2. Name – Specify the control area description.
3. CoCd->CO Area – Choose the assessment control option from the dropdown list.
4. Currency Settings – Enter the currency type and Currency.

What is parallel currencies in SAP?

Parallel currencies are the custom currencies as per the requirement of the company. Parallel currencies can work in foreign business transactions. If we want to do international payments or receivables transactions, we must configure parallel currency.

How do you find the controlling area in a cost center?

How do you build a control area?

IMG Path: SPRO => IMG => Controlling => General controlling => Organization => Maintain controlling area.

1. Run T-code: OKKP;
2. Double click on “Maintain controlling area”;
3. In the basic data overview screen, select “New entries” to create new controlling area.

How do you assign a credit control area to a customer?

We can Maintain Credit Control Area Master Data for a customer :

1. Step 1) Enter Transaction Code FD32 in SAP Command Field.
2. Step 3) In the next screen ,Maintain the Credit Management Data for the Customer.
3. Step 4) Press “Save” button from the SAP Standard Toolbar for save the changes made in the credit limits.

What is functional area in SAP?

A functional area is an account assignment characteristic that sorts operating expenses according to functions. For example: Production. Administration. Sales.

How many types of currency are there in SAP?

In SAP, we can maintain one base currency and two parallel currencies, it means three currencies. In FI documents, we can take four currencies including the transaction currency. With this function we can take reports in multiple currencies as per the management reporting requirements.