In this document we will be configuring the basics of Controlling and also cover the Cost Center accounting Module.
The controlling area configuration is the starting point of configuration in the CO module, which will enable us to configure profit center, product costing and then the profitability analysis module.
In this document we will configure controlling area 9100 (A Group). To help us better understand the configuration let us take the below scenario:
The management of A group is desirous of having a single controlling area, so that they can have cross company code controlling. A Group is fast expanding group and will be setting various companies across the globe in the future.
Each company code in the above case will be attached to this controlling area. Currently A Group has only one company called as 9100 (A Ltd). This company code is attached to controlling area 9100. A group is located in Germany. The controlling area currency is configured as group currency EUR.
A Group requires the following modules within controlling to be implemented:-
1) Cost center accounting
2) Product costing
3) Profit center accounting
4) Profitability analysis
So lets now grind in further of how to configure the basics of controlling and the Cost Center in this document.