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Published by Ambrish Nigam

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Published by: Ambrish Nigam on Dec 28, 2011
Copyright:Attribution Non-commercial


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A controlling area is the central organizational structure in Controlling (CO) and it is used in the
cost accounting. The controlling area, as in the case of company code, is a self contained cost
accounting entity for internal reporting purpose. The controlling area is assigned to company
code so as to ensure that necessary transactions posted in FI are transferred to controlling for cost
accounting process.

1- A company code needs to be attached to the controlling area (1:1 relationship).
2- More than one company code can work with same controlling area.
3- A Chart of Account can be assigned to more than one controlling area
4- One or more controlling area can be defined under an Operating Concern
5- At Client level there can be one or more controlling areas.

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