The Controlling Area

The controlling area is the central organizational unit within the CO module. It is representative of a contained cost accounting environment where costs and revenues can be managed. If you utilize CO, you must configure at least one controlling area.

Prior to beginning any configuration, it is important to understand the relationships between FI and CO and between the controlling area and the operating concern. The operating concern will be explained in greater detail later in this chapter, but briefly, it is the environment within which CO-PA, or Profitability Analysis, operates. The operating concern is the first step in completing CO-PA configuration.

You can see that the link between FI and CO is established through ...

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