Answer / zaver raipanchola

Company Code is an independent accounting entity. A company
code is assigned to a chart of accounts.
Controlling area refers to the Organizational unit within a
company, used to represent a closed system for cost
accounting purposes.

Answer / prasanna bhat

A controlling area can have following 2 type of
relationship with a company code,

1 A single company code relation
2 corss company code relation.
This means that one single controlling area can be assigned
to several diffrent company codes. Controlling can have one
is to one relationship or a one is to many relationship
with diffren comnay codes.

Controlling area have all the controlling activities of
cost centre accounting, product costing, profit centre &
profitability analysis are stored,

In a similar way company code have all the finance
activities.

Answer / ravi

company code is finance umbrella and controlling area is cosing umbrella it activate the cost center profit center etc...one controlling area assign to several company codes.

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