entity relationship in CO

[Former Member]

Hello Friends,

How does the following organisation units relate to one another :

Controlling Area

Cost Center

Company Code

Business Area

Personnel Area

Personnel Subarea

What is the purpose of a controlling area and what is its entity relationship with cost center and company code or Business area?

Can a cost center or company code belong to multiple different controlling area ?

Hope you can help me please.

regards

Markus Z.

[Former Member · Accepted solution]

Hi......

Controlling Area is a closed org unit used for allocation of costs. Closed becuase costs cant be allocated to a cost centre/entity outside controling area.

A Company code belongs to a single Controlling area.

More than one Company code can be assigned to a single CO area.

A cost centre belongs to a single Controlling area.Cost centres are with in controlling area.

Assign points if useful

Regards

Aravind

[Former Member]

Hi

controlling area is where cost accounting is done. It is created at client level. One or more than one company code can be assignned to one controlling area. cost centers are cretaed at company code level. To create cost centers we have to defined standard hierarchy under controlling area.

one comapny code can not belong to multiple controlling areas. But One controlling area can have multiple comapnmy code assigened to it

hope this helps

pushkaraj

[Former Member]

thanks Friends! message closed.