The two things you need to pay attention to, when you are configuring a controlling area in SAP
When you are configuring a controlling area in SAP system, you always use the transaction code OKKP, and below is the screenshot of OKKP.
Please look at the two fields in the red boxes, this article will show you the better way to set the values of these fields.
The first field is ‘CoCd->Co Area’, this field determines the mapping relation between company code and controlling area in SAP, and the system provides two optional choices for us, one is ‘1 Controlling area same as company code’, the other is ‘2 Cross-company-code cost accounting’. The recommended choice is the second one ‘2 Cross-company-code cost accounting ‘, because only if you chose this value, the users of the SAP system can manage and analyze their cost of multiple companies at the same time, that’s convenient for them.
The second field is ‘Currency Type’, this field influence the strategy of the currency determination of the controlling area. The recommended choice is ’30 Group currency’. Because this is the flexible setting for the users of SAP, especially when they are expanding their business to foreign land and needing a new currency in finance accounting.