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What is the Relation Between Controlling Area and Company Code?

Relation Between Controlling Area and Company Code:

A Controlling area can have the following 2 type of relationship with a Company code

a. Single Company code relation

b. Cross Company code relation

This means that one single controlling area can be assigned to several different company codes. Controlling can have a one is to one relationship or a one is to many relationship with different company codes.

Controlling Area is the umbrella under which all controlling activities of Cost Center Accounting, Product Costing, Profit Center and Profitability Analysis are stored.

In a similar way Company Codes is the umbrella for Finance activities.

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