OX06 - Maintain Controlling Area

The controlling areais an organizational unit in Accounting used to subdivide the business organization from a cost accounting standpoint.

Maintain Controlling Area

OX06	IMG  -> Enterprise Structure ->Definition -> Controlling -> Maintain Controlling Area -> Maintain Controlling Area

1	Controlling Area  The four-digit alphanumeric identifier of your controlling area. If your controlling area will contain just one company code, select the option for the controlling area, which is a one-to-one relationship to the company code. When prompted, enter the company code ID. Realize that if you indicate that there is more than one company code to a controlling area, then assigning only one will not cause any system issues. However, if you do indicate that there is a one-to-one relationship between the CO area and company code, then going back and having to change this setting will be difficult. Therefore, it would be better if you just confirm that it will be a one-to-many relationship so that if you need it, it will be available for your use.
2	Name  The description of your controlling area.
3	Person Responsible  The name of the person responsible for this configuration.
4	CoCd->CO Area   This field is used to define the relationship between the company code and the controlling area. You will have identified this relationship when you determined the controlling area ID. The options for this field are as follows: ·         Controlling Area Same as Company Code  Use this if you have a one-to-one relationship between company code and controlling area. ·         Cross-Company Cost Accounting  Use this if your controlling area will have two or more company codes assigned to it. This setting will activate cross-company cost accounting within the controlling area.
5	Currency Type   This setting defines the type of currency used throughout the controlling area. Currency settings can be confusing. Remember that the combination of the Assignment Control selection and the currency type define the controlling area currency, and depending on the settings defined, then the Other Company Code Currency Indicator is activated. If you selected 1 in the CoCd->CO Area field, ECC uses the default setting of 10, Company Code Currency. If you selected 2, or Cross-Company Cost Accounting, your choices expand. Use the pull-down menu and the following options will appear: ·          10 (Company Code Currency)   Use this only if all the company codes assigned use the same currency. ·          20 (Controlling Area Currency)  This selection offers the use of a possible group currency for the controlling area. It allows the controlling area to identify a specific currency for only that controlling area. All other selections impose artificial constraints. ·          30 (Group Currency)  This is currency maintained at the client level. Use this option to reconcile FI and CO ledgers. ·          40 (Hard Currency)  This can be used if the assigned company codes are from the same country and use the same index-based or group currency. This option is often used in countries where inflation is very high. ·          50 (Index-Based Currency)  This is often used in countries where inflation is high or unstable. The currency is fabricated and is used to support external (outside the company) reporting only. ·          60 (Global Company)  Use this only if you have global companies configured. In addition, each of the companies assigned to the controlling area must belong to the same Global Company or use the same currency.
6	Currency  The entry made for currency type may influence your selection of a currency. Remember that you are defining the default currency for the controlling area only.
7	Diff. CCode Currency   This is used if the company code currency is going to be different than the currency currently assigned to the company code.
8	Curr/Val. Prof.   With this indicator, the currency and valuation profile determines which valuation views can be stored in which currencies. You will need to assign a currency and valuation profile to the controlling area only if you are looking to store multiple valuation views in the system.
9	Active  This indicator shows whether a controlling area allows transfer prices for a company code or profit centers
10	Chart of Accts (COA)  Each controlling area can utilize only one chart of accounts. If you selected 1 in the CoCd->CO Area field, the system populates this field automatically with the company chart. If not, you must manually enter the chart name. Remember that all company codes assigned to the controlling area must use the same chart the controlling area uses
11	Fiscal Year Variant   The variant must be the same for the assigned company codes and the controlling area. The previous options are the required parameters between the company code and controlling area. Basically these are the required indicators or parameters to allow a company code to be linked to a controlling area.
12	Setting for Authorization Hierarchies for Cost Centers (and Profit Centers)  Since the initial introduction of the new authorization concept after release 4.0, you can inherit authorizations within a hierarchy. If a user is authorized for one of these groups, then they are also authorized for all objects in these groups. This logic applies only to the standard hierarchy, but now you can also have these settings apply to two additional alternative hierarchies that are used in the authorization check process. These indicators also allow you to deactivate the standard hierarchy and use the alternative hierarchies. This applies to both the cost center and profit center hierarchies. Authorizations are checked in the sequence starting with the current calendar year and the valid hierarchies—standard hierarchy, then alternative hierarchy 1, then 2.