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Controlling (CO)
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Controlling (CO)
Use
This component provides you with information for management decision-making, showing where costs have been incurred in
the organization and for what purpose. It provides the basis for associating the cost of sales with the revenue earned and for
explaining the value added by production and investment activities within the organization.
As well as documenting actual costs, the main task of controlling is planning. You can determine variances by comparing actual
data with plan data, enabling you to effectively monitor your business processes.
Analysis of pro tability, for example based on contribution margins, is used to monitor the cost efficiency of the different areas
of the organization as well as of the organization itself.
Integration
Controlling (CO) and Financial Accounting (FI) are integrated and require no reconciliation to ensure consistency, because the
nancial data in CO and FI is based on the same line items. Each journal entry contains not only the G/L accounts to be debited
and credited but also the CO account assignment objects such as the cost center for wages and salaries, a project or order for
material costs, or a combination of characteristics such as product, customer, and region for sales revenues.
Cost elements are represented in the system as a type of G/L account. Primary cost elements re ect operating expenses such
as payroll, selling expenses, or administrative costs, while secondary cost elements re ect costs resulting from value ows
within the organization, such as internal cost allocations and settlement transactions.
Features
Cost and Revenue Element Accounting provides you with an overview of the costs and revenues that occur in the organization.
For more information, see the SAP Library under Financials Controlling Cost Element Accounting .
Cost Center Accounting monitors the costs arising within your organization. It is useful for a source-related assignment of
overhead costs to the location in which they occurred.
For more information, see the SAP Library under Financials Controlling Cost Center Accounting .
Internal orders collect costs according to the job that incurred them. You can assign budgets for these jobs to ensure that costs
are not exceeded.
For more information, see the SAP Library under Financials Controlling Internal Orders .
Product Cost Controlling calculates the costs incurred in the manufacture of a product or provision of a service. It enables you
to calculate the minimum price at which a product can be pro tably marketed.
For more information, see the SAP Library under Financials Controlling Product Cost Controlling .
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Pro tability Analysis analyzes pro t and loss by individual market segments. The corresponding costs are allocated to revenues
for each market segment.
Pro tability Analysis provides a basis for decision-making, for example price determination, customer selection, conditioning,
and choosing distribution channels.
For more information, see the SAP Library under Financials Controlling Pro tability Analysis .
Pro t Center Accounting evaluates the pro t and loss of independent areas within the organization that are responsible for
their costs and revenues.
Pro t Center Accounting is a statistical accounting component. This means that it takes place on a statistical basis at the same
time as true accounting. In addition to costs and revenues, you can see key gures such as return on investment, working
capital, or cash ow on a pro t center.
For more information, see the SAP Library under Financials EC-Enterprise Controlling EC-Pro t Center Accounting .
Organization in Controlling
Use
You can de ne the company-speci c organizational units from the perspective of an SAP application component.
In the Financial Accounting (FI) component, you can de ne the organizational units for accounting in the Controlling (CO)
component under controlling aspects.
The SAP system has direct links between internal and external accounting. This means that FI and CO organizational units are
related.
Integration
You assign organizational units from the Financial Accounting component to the units in the Controlling component. This
enables you to transfer postings relevant to cost accounting on to Controlling.
The following sections describe the organizational units in other components, which have cross-component relationships to
units in Controlling. You cannot de ne these organizational units separately from one another.
Note
Cross-component relationships exist between the following organizational units in internal and external accounting:
Company Code
De nition
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The smallest organizational unit for which a complete self-contained set of accounts can be drawn up for external reporting.
This involves recording all relevant transactions and generating all supporting documents for nancial statements, such as
balance sheets and pro t and loss statements.
Use
You can set up more than one company code for each client . This enables you to manage the accounts for more than one
independent company at the same time. However, you need to set up at least one company code.
A legally independent company is normally only represented by one company code in the SAP system. You can, however, also
use a company code to represent an operation that is not independent according to trade law. This is required, for example, if
this operation is in another country and must use the corresponding country currency and must meet the local tax
requirements.
In nancial accounting, business transactions are always entered on the company code level and processed further. The costs
are also managed on the company code level. By using internal organizational structures, it is possible to divide this up even
further. All company-speci c speci cations are made on the company code level.
See also:
Controlling area
The controlling area is an organizational unit within an enterprise for which a complete cost accounting can be performed within
a closed system.
A controlling area may contain one or more company codes which can operate in different currencies, if required. The
corresponding company codes within a controlling area must all use the same operational chart of accounts.
All internal allocation transactions refer only to objects from the same controlling area.
Use
The internal business transactions are mapped in the controlling area. The primary costs are transferred from external
accounting and structured according to internal criteria. If the primary costs are direct costs, then they are assigned to cost
objects. If they have an overhead cost object, they are assigned to cost centers or overhead cost orders, and are then allocated
by means of internal allocation techniques.
When you create master data, the system always assigns the controlling objects to a controlling area and a company code.
Due to the ner level of detail in Controlling (additional structuring elements, such as cost centers or internal orders),
information can be derived from Controlling for cost control, enterprise controlling, or controlling for sales and distribution, for
example.
Related Information
Assigning Controlling Areas and Company Codes
Assignment of Controlling Areas and Plants
Use
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You de ne the settings for the controlling area to map the structure of your organization from a Controlling perspective.
Prerequisites
Before you create a controlling area, you must have fully created the company codes and business areas in Financial Accounting
that are to be assigned.
Process Flow
1. De ne the controlling area and enter the basic data relevant to cost accounting.
To do this, in Customizing under Controlling Controlling General Organization Maintain Controlling Area .
2. Activate each component in the controlling area (cost centers, order management, pro tability analysis, and so on).
3. Store additional control information, such as, which currency the system should use to update the values, and whether it
should display variances.
You can also activate individual components in the controlling area, using the Implementation Guide (IMG) for each Controlling
component.
Related Information
Assigning Controlling Areas and Company Codes
Prerequisites
When you call up the rst transaction in Controlling, you must select a controlling area.
Note
You cannot execute a transaction for more than one controlling area at the same time.
If you are working with multiple sessions, note that changing the controlling area setting in one session affects all other
sessions. Therefore it is not possible to work with different controlling areas in different sessions.
Procedure
Enter the required controlling area in the dialog box. The system saves your entry as a user parameter so that you do not need
to enter the controlling area again when you call other transactions.
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2. Enter CAC as the parameter ID (controlling area).
Use
Company codes can be assigned to controlling areas in various ways, allowing the representation organizations with different
structures. The assignment should be based on the logistics and accounting processes of the organization. The organizational
environment is important as well.
There are two possible basic relationships between controlling areas and company codes:
Each controlling area has one company code assigned to it (1:1 relationship)
With this type of relationship, the nancial accounting and cost accounting views of the organization are identical.
Each controlling area has multiple company codes assigned to it (1:n relationship)
With this type of relationship, cost accounting is carried out in multiple company codes in the same controlling area. All
cost accounting data is stored in one controlling area and can be used there for allocations and evaluations. The external
and internal accounting perspectives differ from each other.
A 1:n relationship is appropriate for example if the organization has independent subsidiaries using a global cost
accounting system, since it is possible to perform internal allocations between company codes.
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Keep in mind that it can be difficult or extremely time-consuming to change the relationship between controlling areas and
company codes after the assignment has been made. Therefore, when deciding whether a 1:1 or a 1:n relationship is more
appropriate, carefully consider the following aspects and limitations:
Consolidated analysis of settled transactions across company codes in Pro tability Analysis (CO-PA). In this
situation, you assign more than one controlling area to an operating concern.
Representation of intercompany processes when the production plant is the same as the delivering plant.
Cross-company code transactions that must be processed in a controlling area, such as production in an
associate plant or special cases with intercompany processing.
Note
If you decide to assign more than one company code to a controlling area (1:n relationship), note the following:
All cost elements (in all company codes) must be treated in the same way, for example as primary cost
elements or accrual cost elements.
The scal year variants in the company codes must match the scal year variants in the controlling area.
SAP recommends executing period-end closing in Controlling for all company codes simultaneously. A
separate period-end closing process for each company code would be too time-consuming.
You can only execute period-end closing for a shared controlling area when the closing process in Financial
Accounting has been completed.
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If you want to calculate plan prices automatically, you need to wait until planning is complete.
If you want to prevent postings across company codes in Controlling, you need to de ne the appropriate
authorizations.
If you later want to move a company code to another SAP system or client, this requires more effort than
when the controlling area has only one company code.
If you use only one controlling area, you can use only one operating concern.
You can display pro t center allocations in only one controlling area.
Activities
1. To assign company codes to controlling areas, go to the Implementation Guide (IMG) and choose Controlling General
Controlling Organization Maintain Controlling Area .
5. Enter the company codes that you want to assign to the controlling area.
Note
The company codes must be fully maintained before you can assign them.
Use
Each plant is assigned uniquely to a company code. As a company code is always assigned uniquely to a controlling area, you can
also easily derive the relationship from the controlling area and plant.
Example
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Business Area
De nition
An organizational unit in external accounting, which corresponds to a separate operational or responsibility area in the
organization, and value ows recorded in Financial Accounting can be assigned to it.
Use
The business area should be treated as a separate economic unit, for which you can create an internal balance sheet and a
pro t and loss statement. The business area is, however, only an internal organizational unit and does not have any external
impact.
You de ne business areas if you wish to create a balance sheet and a pro t and loss statement for internal areas, in addition to
company codes.
If you want to create business area balance sheets for internal reporting purposes, you must maintain the business area within
Controlling as well. This means that when you create cost center master records you need to specify the business area. CO
objects (such as, cost centers and internal orders) aid account assignment, as the business area can be derived from the
master data records. When you post primary costs to a cost center, the system determines the business area automatically
from the cost center master data. This enables the costs to be assigned to the correct business area. Therefore, you do not
need to manually set the business area in the posting document, as the system does this, and thus reduces the number of
incorrect assignments to a minimum.
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Operating Concern
An operating concern represents an organizational unit for which the sales market has a uniform structure. It is the valuation
level for pro tability analysis.
Structure
The operating concern is structured into characteristics and value elds.
Characteristics
Decide which level you want to analyze, such as the sales organization, region, product, or customer.
Value Fields
Decide which values and key gures you want to analyze, such as revenues, sales deductions, costs, or quantities.
Note
Value elds are used only in costing-based pro tability analysis. They are not used in account-based pro tability
analysis, which is the basis of Margin Analysis.
This structure will vary from one company to another. For example, the structure of total production costs in a manufacturing
company differs from that in a wholesale or retail company. Consequently, you need to model pro tability analysis in
Customizing by de ning the characteristics and value elds that you want to analyze.
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The system then generates the necessary database tables for CO-PA transaction data and access programs based on how you
de ned your operating concern.
For information on the procedure for de ning an operating concern, in Customizing for Pro tability Analysis, choose
Structures De ne Operating Concern .
One characteristic that should not be used in pro tability segments is the sales order in repetitive manufacturing.
You specify in Customizing which characteristics belong in which pro tability segments.
For more information, see Customizing for Pro tability Analysis under Flows of Actual Values Initial
Steps Summarization Summarization of Account-Based Line Items and Pro tability Segments . More information can be
found under Pro tability Analysis Flows of Actual Values Initial Steps Summarization .
Pro t Center
De nition
A pro t center is an organizational unit in accounting that re ects the structure of the organization for the purpose of internal
control.
You can analyze operating results for pro t centers using either the cost-of-sales or the period accounting approach.
By calculating the xed capital as well, you can use your pro t centers as investment centers.
Use
Pro tability Analysis at the pro t center level is based on costs and revenues. These are assigned statistically to all logistics
transactions and other allocations that are relevant for a pro t center by means of a parallel update.
The exchange of goods and services between pro t centers can be valuated using the same valuation approach as in nancial
accounting or another approach (see Multiple Valuation Approaches/Transfer Prices).
Structure
The master data for a pro t center contains, for example, the following information:
Validity Period
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Area Assigned to Standard Hierarchy
Every pro t center is assigned to the controlling area organizational unit. This is because the values are displayed in G/L
accounts.
The system transfers all the data to Pro t Center Accounting together with the relevant G/L account number. The data can
only be aggregated if you use:
A single currency
Time Dependency
Like cost centers, pro t center master data is valid for a speci c time period. This has the following advantages:
First, you can enter a period during which actual or plan data can be posted to the pro t center.
Second, you can de ne time-based elds when you customize Pro t Center Accounting, for example the pro t center
responsibility.
This enables you to redetermine the responsibility for a pro t center at the scal year change, for example, without having to
create a new pro t center master record or lose the previous responsibility information.
Integration
Enterprise Organization
If you are using the enterprise organization, both pro t centers and cost centers form part of it. For more information, see
Enterprise Organization.
Note
You can only use the enterprise organization to portray relatively small hierarchies. Trying to portray a larger hierarchy in the
enterprise organization can lead to performance issues. For more information, see SAP Note 217338 .
To ensure that your data in Pro t center Accounting is consistent with that in other areas, you must assign each pro t center to
the Standard Hierarchy.
The standard hierarchy is used in the information system, allocations, and various planning functions. You can also assign your
pro t centers to alternative hierarchical structures, called Pro t Center Groups.
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If the pro t centers in your organization are closely linked to your cost centers, you can simply copy your cost center master
data to create your pro t centers. For more information on this function, see the Implementation Guide (IMG) for Pro t Center
Accounting, under Master Data.
Related Information
Manage Pro t Centers
Manage Pro t Center Groups
Pro t Center Accounting (EC-PCA)
Plant
De nition
An organizational unit serving to subdivide an enterprise according to production, procurement, maintenance, and materials
planning aspects. It is a place where either materials are produced or goods and services provided.
Use
The preferred shipping point for a plant is de ned as the default shipping point, which depends on the shipping condition and the
loading condition.
For the placement of materials in storage (stock put-away), a storage location is assigned to a plant. The storage location
depends on the storage condition and the placement situation.
The business area that is responsible for a plant is determined as a function of the division. As a rule, a valuation area
corresponds to a plant.
Structure
A plant can assume a variety of roles:
As a maintenance plant, it includes the maintenance objects that are spatially located within this plant. The maintenance
tasks that are to be performed are speci ed within a maintenance planning plant.
As a retail or wholesale site, it makes merchandise available for distribution and sale.
A plant can be subdivided into storage locations, allowing stocks of materials to be broken down according to prede ned criteria
(for example, location and materials planning aspects).
A plant can be subdivided into locations and operational areas. Subdivision into locations takes geographical criteria into
account, whereas subdivision into operational areas re ects responsibilities for maintenance.
Integration
All data that is valid for a particular plant, as well as for the storage locations belonging to it, is stored at plant level. This
includes, for example, MRP data and forecast data.
Currencies
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In external accounting, you assign a company code currency to each company code. You can also specify one or two parallel
currencies for a company code, which are recorded in the external accounting documents. Examples of parallel currencies are
currencies from other organizational units (group currency, hard currency, global company currency or index-based currency).
When you de ne a controlling area, you specify whether the controlling area currency may differ from the company code
currency, and which currency is to be the controlling area currency.
You can use the company code currency or the currency of a different organizational unit recorded as a parallel currency in the
company code. You can also use a separate controlling area currency independent of the company code currency.
Cross-company code cost accounting can therefore be performed for company codes that use values recorded in different
currencies. SAP recommends that you specify a consistent parallel currency for the company codes, and use this as the
controlling area currency. In this case, postings in Controlling are then made in currencies that are relevant for Accounting.
Related Information
Currencies in Controlling
De ning Currencies
Currencies in Controlling
Controlling area currency is used for cost accounting purposes and serves as the default currency for objects in CO. You
de ne the controlling area currency when you create the controlling area. This currency is based on the assignment
control indicator and the currency type.
Object currency
Each object in Controlling, such as a cost center or internal order, may use a separate currency speci ed in its master
data. There is an object currency for the sender and an object currency for the receiver.
Note
When you create an object, the default object currency is the controlling area currency. You can specify a different
object currency only if the controlling area currency is the same as the company code currency.
Transaction currency
Documents in Controlling are posted in the transaction currency. The transaction currency can differ from the controlling
area currency and the object currency. Amounts are automatically converted to the controlling area currency at the
speci ed exchange rate.
For the currencies listed above, actual data is translated with the average rate (exchange rate type M).
You store the exchange rate type for each currency. You can specify a different exchange rate type for planning data in the
version.
All currencies can be recorded, which enables you to use them in evaluation and analysis. However, this is only possible if you
speci ed that all currencies should be updated in the controlling area. For more information, see the Customizing activity
Maintain Controlling Area.
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Example
If the transaction currency is USD, the controlling area currency is EUR, and the object currency is SFR, the amounts are
converted as follows:
If you use cross-company-code cost accounting, the following additional currencies may also appear as controlling area
currencies:
Local Currency
Company code currency (country currency) for local ledgers in external accounting.
For each company code, you can specify parallel currencies which are stored in the documents and updated parallel to
the local currency in the general ledger.
Group Currency
You can specify this currency as a parallel currency (additional local currency) for a company code.
Hard Currency
You can specify this currency as a parallel currency for a company code. You enter the hard currency in the detail screen
for the country.
Index-Based Currency
Fictitious currency required by law for tax returns in certain high-in ation countries.
You can specify this currency as a parallel currency for a company code. You enter the index-based currency in the detail
screen for the country.
You can specify this currency as a parallel currency for a company code. You enter the global company currency in the
detail screen for the company.
Customizing
For more information on de ning currencies, see Customizing under Financial Accounting Financial Accounting Global
Settings Ledgers Ledger De ne Settings for Ledgers and Currency Types .
Related Information
Specifying the Controlling Area Currency
De ning Currencies
Settlement of Freely De nable Currencies in Controlling
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You perform cost accounting in the controlling area currency. You de ne the controlling area currency when de ning the
controlling area in Customizing under Controlling General Controlling Organization .
You can assign more than one company code with varying currencies to a controlling area. The system can derive the controlling
area currency automatically from the company code currencies or currencies of other organizational units. Alternatively, you
can specify a currency independently.
Example
A German corporation has subsidiaries in Switzerland and the USA. The branch in Switzerland balances in a separate
company code in the currency SFR. The subsidiary in the United States balances in a separate company code in the currency
USD. The corporation executes its cost controlling on a global basis in EUR.
Prerequisites
The controlling area currency depends on:
You can specify the assignment control indicator and the currency type in Customizing when de ning the controlling area.
If you choose the assignment of the controlling area at the same time as the company code, then you assign one company code
to a controlling area. In this case, the controlling area currency corresponds to the company code currency.
If you choose the assignment of Cross Company Code Accounting, then you can:
Specify a controlling area currency different from the company code currency.
Note
If you use a controlling area currency which differs from the company code currency, the system automatically records the
company code currency as the object currency for the CO objects. For example, when creating a cost center, the currency of
the company code to which the cost center is assigned is automatically set as the object currency.
Features
Controlling Area Currency Control
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You can transfer the company code currency to the controlling area. If you assign more than one company code to the
controlling area, all company codes must use the same currency. In this case any object currency can be used.
Example
A German company owns a subsidiary in Mexico. The company code currency is MXP (Mexican pesos). The controlling area
should be managed in the same way as the company code. This means that the controlling area currency is also Mexican
pesos and you can de ne the object currency for CO objects as you wish.
Example
Different subsidiaries of a German corporation produce balance sheets for separate company codes in EUR. For both
company codes, you carry out a joint cost accounting. Use currency type 10 to specify that the company code currency is the
same as the controlling area currency.
You can use the group currency for the controlling area if:
The assigned company code uses the group currency as a parallel currency, and
If more than one company code is assigned to the controlling area, all these company codes must use the same group currency
as a parallel currency.
Example
A German company owns a subsidiary in Mexico. The company code currency is MXP. The group currency EUR was de ned
and stored in the corresponding client for external accounting. You can specify the group currency as the controlling area
currency. In this case the company code currency MXP is the object currency.
Example
A German corporation owns subsidiaries in Mexico and USA. The company code currencies are MXP and USD. The group
currency EUR is the parallel currency for both company codes. You can therefore use the group currency EUR as the
controlling area currency. The Controlling objects in the Mexican subsidiary must use MXP and the objects in the American
subsidiary USD.
You can use the hard currency for the controlling area if:
The assigned company code uses the hard currency as a parallel currency, and
The hard currency is stored for the country that it is to be used for.
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If more than one company code is assigned to the controlling area, all company codes must use the same hard currency as a
parallel currency. The company codes must be in the same country, or the countries where the subsidiaries are located must all
use the same hard currency.
Example
A German company owns a subsidiary in Mexico. The company code currency is MXP. USD is speci ed as the hard currency
for external accounting and is stored for Mexico. The hard currency can be used as the controlling area currency. In this case
the company code currency MXP is the object currency.
You can use the index-based currency for the controlling area if:
The assigned company code uses the index-based currency as a parallel currency, and
The index-based currency is stored for the land that it is to be used for.
If more than one company code is assigned to the controlling area, these company codes must use the same index-based
currency as a parallel currency. The company codes must all be in the same country, or the countries where their subsidiaries
are located must all use the same index-based currency.
You can use the global company currency for the controlling area if:
The assigned company code uses the global company currency as a parallel currency, and
The global company currency is stored for the land that it is to be used for.
If more than one company code is assigned to the controlling area, these company codes must use the same global company
currency as a parallel currency. The company codes must all belong to the same company, or the companies must be managed
in the same hard currency.
You can choose any of the currencies for the controlling area from the currencies that you de ned in Customizing.
Example
A German corporation owns subsidiaries in Mexico and USA. The company code currencies are MXP and USD. The hard
currency USD is speci ed as a parallel currency only for the company code in Mexico. USD can be chosen as the controlling
area currency. The CO objects in the Mexican subsidiary must be recorded in the object currency MXP, and the CO objects in
the American subsidiary must be recorded in the object currency USD.
Note
By using the controlling area currency from the currencies of other organizational entities, you ensure that postings within
Controlling appear in currencies relevant to external accounting. This is not the case if you specify any controlling area
currency.
Note
You can specify the assignment control and currency type indicators if
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You have not yet assigned any productive company codes to it.
Once an assigned company code is productive, the currency type cannot be changed.
Related Information
Currencies in Controlling
De ning Currencies
Purpose
In the SAP system, you can post in different currencies.
Prerequisites
You de ne the currencies allowed in the system and the exchange rates in Customizing under SAP NetWeaver General
Settings Currencies .
In Financial Accounting, you need to have de ned a company code currency for each company code. In addition, you can de ne
one or two parallel currencies for each company code. These settings also affect Controlling.
You need to have de ned a controlling area currency for each controlling area. You make these settings in Customizing for
Controlling under General Controlling Organization Maintain Controlling Area . The system can derive the controlling area
currency from the currencies of the company codes or from the currencies of other organizational units. Alternatively, you can
specify a currency independently.
Process Flow
The system requires these currencies to be de ned to check whether an entered currency is allowed and to translate currencies
during posting.
De ne a currency key with long text and short text for each currency.
In Customizing, choose SAP NetWeaver General Settings Currencies Check Currency Codes .
If you do not want the currency to be displayed in the standard format with two decimal places, you can specify the
number of decimal places for each currency.
In Customizing, choose SAP NetWeaver General Settings Currencies Set Decimal Places for Currencies .
Exchange rate types enable you to store different exchange rates on the same date for different purposes. The system
uses exchange rate type M (= average exchange rate) for actual postings. You can de ne other exchange rate types for
different planning scenarios using different exchange rates, for example.
You de ne exchange rate types for currency translation in Customizing under SAP NetWeaver General
Settings Currencies Check Exchange Rate Types .
For each exchange rate type, enter a base currency for the currency translation.
For the required currencies, enter translation ratios in pairs and for each exchange rate type.
In Customizing, choose SAP NetWeaver General Settings Currencies De ne Translation Ratios for Currency
Translation .
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The translation ratios (such as 1:1 or 1000:1) form the basis for the exchange rates and make entry easier when large
differences in the currency units occur between two currencies.
For the required currencies, specify exchange rates in pairs and for each exchange rate type.
In Customizing, choose SAP NetWeaver General Settings Currencies Enter Exchange Rates .
You enter exchange rates for a speci c period. This means that they are valid from the date entered. You can specify the
exchange rates at different intervals depending on your requirements or on exchange rate uctuations.
Note
If you have speci ed a base currency for the exchange rate type, you need to specify the exchange rates only in
relation to the base currency.
Related Information
Posting Documents in a Foreign Currency
Posting Documents in Foreign Currency (Accounts Receivable)
Posting Documents in Foreign Currency (Accounts Payable)
Exchange Rate Type
Parallel Currencies in Financial Accounting
Currencies
As standard, transactions are recorded in journal entries in the local currency and global currency (group currency). Additional,
freely de nable currencies can be con gured in Financial Accounting for each company code.
Examples: For amounts that do not represent actual costs or actual revenues,
values in freely de nable currencies are determined by means of
Results analysis values
currency translation.
WIP calculation
Variances
Down payments
Settlement Receivers
Historical values in freely de nable currencies can be settled to the following receivers:
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CO objects, such as cost centers, internal orders, or WBS elements
G/L accounts
Assets
Settlement Rule
Settlement of freely de nable currencies is based on the Parallel Ledger setting in the settlement pro le. CO objects read this
setting into their settlement rule when they are created.
Note
The Parallel Ledger setting in the settlement pro le is normally read into the settlement rule only once, at the time the
object is created. Thus, if the Parallel Ledger setting is changed and you run further settlements on objects created prior to
the change, those settlements will not re ect the new setting.
The Parallel Ledger setting in the settlement rule can, however, be updated for existing objects if:
No settlements for the object have been performed, or all settlements have been reversed
You select a different settlement pro le in the settlement rule. The current Parallel Ledger setting of the selected
settlement pro le is then read into the settlement rule.
Number Ranges
A number range is a prede ned set of numbers that are assigned to business objects of the same type, such as:
Business partners
G/L accounts
Orders
Controlling documents
Materials
One or more number range intervals are speci ed for each number range, as well as the type of number assignment.
Internal
When a data record is saved, the system assigns a sequential number that lies within the corresponding number range
interval.
External
When saving a data record, either the user or an external system assigns a number. The number must lie within the
corresponding number range interval.
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You need to de ne a number range interval for each business transaction or group of business transactions.
Document Numbers
The system automatically assigns a document number from the corresponding number range to each business transaction.
Note
Number ranges are not used for business transaction COIN (CO through-postings from Financial Accounting). For COIN
transactions, an alphanumeric number is generated automatically.
The business transactions are classi ed according to CO transactions. For example, the business transaction Direct Internal
Activity Allocation belongs to the Controlling transaction Actual Activity Allocation.
You can:
Maintain number range intervals and number range statuses in the controlling area
Process Flow
1. You create individual business transaction groups for each controlling area.
For example, you can group all planning transactions into a business transaction group and then assign it to a number
range interval.
If you require a greater level of detail for the number assignment, you can also create a business transaction group for
each business transaction. If this is the case, you make assignments to the number range on the business transaction
level.
This enables you to combine similar or related business transactions into one number range.
For example, if all planning transactions are in one group, all business transactions associated with planning are processed in
the same number range.
Note
The standard system includes default assignments of business transactions to number ranges for controlling area 0001. You
can copy these assignments to other controlling areas if you wish. You then only need to maintain the number ranges if you
require other assignments or other number range groups.
Related Information
Document Numbers in Controlling
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Use
The origin of a document number in Controlling (CO) depends on the business transaction:
CO business transactions except COIN Taken from the number range for the business transaction as
de ned in the Customizing activity Maintain Number Ranges for
Controlling Documents
Example: 4000000001
Business transaction COIN (CO through-posting from Financial Automatically generated alphanumeric number
Accounting)
Example: A00001XP00
Note
This number is not taken from any number range. It is
generated automatically based on an algorithm.
Note
Migrated journal entries from CO documents show the original CO document number.
Activities
You de ne number ranges for CO documents in Customizing under Controlling General Controlling Organization Maintain
Number Ranges for Controlling Documents .
More Information
Number Ranges
Note
You must de ne number ranges for each controlling area in Controlling. The sample client 000 contains defaults for number
ranges.
You combine transactions into transaction groups. Create the plan and actual transactions in separate transaction groups.
Period-Based Transactions
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Transaction Description
Business Transaction-Based
Transaction Description
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Period-Based Transactions
Transaction Description
Business Transaction-Based
Transaction Description
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Transaction Description
Transaction Description
Related Information
Number Ranges
Chart of Accounts
Use
A chart of accounts is a structure containing the G/L accounts used by one or more company codes.
For each G/L account, the chart of accounts shows the account number, the account name, and information that determines
the function of the account and that controls how the account is created in the company code and in the controlling area.
You need to assign a chart of accounts to each company code. This chart of accounts is then the operating chart of accounts
and is used for the daily postings in the company code. If cost and revenue accounting is active, the chart of accounts is also
used for postings in the controlling area.
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You have the following options when using multiple company codes:
You can use the same chart of accounts for all company codes
If the company codes all have the same requirements for the chart of accounts setup, assign all company codes to the
same chart of accounts. This could be the case if all company codes are in the same country.
In addition to the operating chart of accounts, you can use two additional charts of accounts
If the individual company codes need different charts of accounts, you can assign up to two charts of accounts in addition
to the operating chart of accounts. This could be the case if the company codes are in different countries.
Note
The use of different charts of accounts has no effect on the balance sheet and income statement. When creating the balance
sheet or the income statement, you can choose whether to balance the company codes that use different charts of accounts
together or separately.
Structure
Charts of accounts can have three different functions:
The operating chart of accounts contains the G/L accounts that you use for daily posting in your company code.
Financial Accounting and Controlling both use this chart of accounts.
The group chart of accounts contains the G/L accounts that are used by the entire corporate group. This enables group
reporting.
A country-speci c chart of accounts contains the G/L accounts needed to meet a speci c country's legal reporting
requirements.
More Information
Cost Accounting and Chart of Accounts
De nition
The scal year variant contains the number of posting periods in the scal year and the number of special periods.
You can de ne a maximum of 16 posting periods for each scal year in the Controlling component (CO). To de ne the scal year
variant, go into Customizing for Financial Accounting (FI) under Financial Accounting Global Settings Fiscal Year Maintain
Fiscal Year Variant .
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Integration
You need to specify the scal year variant for each company code.
When you create a controlling area, you also need to specify the scal year variant. The scal year variants of the company code
and controlling area may only differ in the number of special periods used. You need to ensure that the scal year variants
match, in other words, they may not have a time con ict.
Example
You can assign a company code using a scal year variant with 12 posting periods and four special periods to a controlling
area that has a scal year variant with 12 posting periods and one special period. The time frame, for example, from April 1 to
March 31 in the following year, must be identical in each scal year variant.
However, it cannot be assigned to a controlling area with 52 posting periods for example.
For more information on scal year variants, see the SAP Library under FI Financial Accounting General Ledger Accounting FI
- Closing and Reporting Fiscal Year .
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