Assigning Controlling Areas and Company Codes
Thecompany code and controlling area organizational units can be combined in a number of ways. Using these combinations you can represent organizations with different structures.
In this example, the financial accounting and cost accounting views of the organization are identical.
This example is Cross-Company Code Cost Accounting. Cost accounting is carried out in multiple company codes in one controlling area. All cost-accounting relevant data is collected in one controlling area and can be used for allocations and evaluations. In this case, the external and internal accounting perspectives differ from each other.
For example, this method can be used if the organization contains a number of independent subsidiaries using global managerial accounting. Cross-company code cost accounting gives you the advantage of using internal allocations across company code boundaries.
If you assign more than one company code to one controlling area, then you need to note the following:
You need to treat each cost element (in all company codes) in the same way (for example, as a primary cost element, or as an accrual cost element).
In Financial Accounting, you can also use country-specific charts of accounts.
You can only execute period-end closing for a shared controlling area once closing is complete in Financial Accounting.
For tax reasons, cost flows (that are cross-company code) in Controlling can only be passed onto Financial Accounting if the company codes form an integrated company with sales tax.
The company code(s) must be fully maintained before you can assign them to a controlling area.
See also:Example: Assigning Controlling Area and Company Code