You have created the controlling area, and assigned one or more company codes to it (see: Maintain Controlling Areas in Customizing for General Controlling ) .

You have created cost elements for the activity allocation (cost element category 43) (see: Maintain Cost Elements for Activity Allocation in Customizing for Cost Center Accounting ).

Check the existing search helps, if necessary, (see: Define Search Helps for Activity Types in Customizing for Cost Center Accounting ).