One controlling area

When you have one controlling area:

· The same operative chart of accounts is used.

Each enterprise entity in the controlling area only uses the specific accounts it requires. You can use a country chart of accounts to record country-specific requirements.

· Posting periods are always the same. Special periods are, however, an exception.

· You must agree on controlling master data, for example for cost elements, activity types, cost centers. Uniform procedures should exist for maintaining master data.

· Work on period-end closing must be coordinated (planned and actual work). You must agree on a time schedule for work on period-end closing. You must define how costs are allocated and prices are calculated for services per cost center / cost center group

· You have a choice of three currencies. Controlling area currency, object currency and transaction currency. For cost accounting for several company codes and several countries, the object currency corresponds to the transaction currency.

· You have unlimited use of the project management function. You can work with one project definition, one project structure plan and one network. You have unlimited use of project management and reporting functions.

· You have unlimited use of the cost distribution functions (cost center assessment and internal activity allocation.

· You can define a separate operative chart of accounts for each controlling area. You can use the group chart of accounts for consolidation.

· You can work with different posting periods. Controlling areas that are assigned to the same operating concern use the same posting periods.

· Work on period-end closing do not need to be coordinated (planned and actual work).

· You define controlling master data such as cost elements, activity types, cost centers for each specific controlling area.

· You must ensure that the organizational structure caters for comprehensive project management. You can work with one project definition, one project structure plan and one network for each controlling area. You have unlimited use of project management and reporting functions within each controlling area. You may use the Executive Information System (EIS) if you would like project reporting to cover all controlling areas (cost elements, cost centers, orders).

· You can use the Special Purpose Ledger (FI-SL) or Consolidation (EC-CS) components to draw up reports for all controlling areas. Ensure that you consolidate the appropriate elements from different controlling areas.

For more information on cost accounting for several controlling areas see OSS note 107293.