Since the management at Sapo has decided to use a single enterprise-wide cost reporting system, one central controlling area has been created. There are two prerequisites for representing the enterprise in this way:

• Cost type structures and cost center structures between legal entities have been reconciled.
• All the company codes use the same operational chart of accounts and a uniform fiscal year division.

The controlling area lies on and inside the operating concern tile, because each controlling area must be assigned to a complete operating concern. You may only adopt central cost accounting in conjunction with central profitability analysis. You can assign several controlling areas to one operating concern.