The creation of Controlling Area is further divided into Activation of Components and Assignment of Company Codes.
Activation of Components
In this section, we have to activate the relevant components as explained below:
The cost centre accounting is activated here. We have following options with regards to CCA activation
CCA is not activated
CCA is activated without limitations and cost centres can be used as account assignment objects
Active with validation
CCA is not active. Cost centers are validated against the cost center master. The cost centers can be used as account assignment objects but the relevant CO files are not updated on posting. If CCA is implemented at a later date, you can subsequently post the cost-relevant business transactions in cost centers to the relevant CO files.
Active for existence checks
Same as Active. The only difference is that the cost centers are not created in full, but only in part using the "Rough entry" function.
Account Assignment Activity type Active
This indicator controls whether the activity types can be used as account assignment objects for actual postings.
If this indicator is selected, actual primary costs can be assigned directly to the activity type of a cost center.
This indicator controls the setting for order management
Order are not validated and can’t be used as account assignment object.
Order management is active without limitations. Orders are validated and can be used as account assignment object.
Active for validations
Order management is inactive. Orders are validated against master data and can be used as account assignment objects, but the corresponding CO files are not updated.
Active for existence validation
Functions the same as indicator Active except that orders are checked to see if they exist and not whether they are allowable for the relevant posting transaction.
Controls whether commitments are updated for the controlling area or not.
Activation of Profitability Analysis is done separately in CO-PA component of Controlling Module.
Activity Based Costing
Indicates whether Activity Based Costing component of Controlling is active or not.
Profit Centre Accounting
Indicates whether PCA component of Controlling is active or not.
This indicator controls whether CO files are to be updated as additional account assignments for posting transactions that use WBS elements and networks or not.
CO files are updated. The WBS element and network numbers are validated with the corresponding master data. Indicator not selectedCO files are not updated. Note that, even if you do not select this indicator, the system validates the master data for additional account assignments to a WBS element. The network number, however, is not validated. Select this option if you are planning to implement PS Module.
This indicator controls the use of Sales Orders in Make to Order production.
System allows following
- Posting of actual costs and revenues to the Sales Order.
- Production Order, Networks to settle the costs to the Sales Order Item.
Indicator not selected
If the indicator is not active, the SAP system neither checks the CO object for sales order items during posting to Financial Accounting, nor updates costs and revenues to the sales order item.
This indicator activates calculation of variance.
This Indicator controls whether the system calculates price variances for primary cost postings by transaction (that is, by posting) and posts them in the Controlling component (CO). If the indicator is active, the system makes the calculations and postings.
Assignment of Company Codes
In this section we assign the Company Codes to Controlling Area. The Company codes can be assigned to controlling area if following conditions are met:
- Controlling Area and Company Codes have same Chart of Accounts
- Controlling Area and Company Codes have same Fiscal Year Variant
If any of the above two conditions are not met, system does not allow assignment of company code to the controlling area.
Controlling Area I
Controlling Area II
Controlling Area III
Activation of Components in Controlling Area, Assign COA & Fiscal year Variant to Controlling Area, Assignment of Company Code to Controlling Area, SAP Controlling Area,