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 Controlling Area

Definition

Controlling area is an organizational unit from the Accounting component in the R/3 System, used to represent a closed system for cost accounting purposes.

In the standard R/3 System, the controlling area constitutes the framework for planning, allocation and monitoring of costs.

Use

If your enterprise has or plans to have uniform controlling structures , it makes sense to set up uniform structures for cost accounting.

Before you do this, decide whether to have one or more logical controlling areas. This decision depends on your company’s corporate policy, that is on whether your company has centralized or decentralized management structures.

For more information, see:

Controlling area: Notes

Integration

Controlling Area: Integration (Applications)

Controlling Area: Integration (Organizational Unit)