2 Controlling areas - Intercompany postings

Hello Experts,
Our client is looking at the possibility of having more than One Controlling area and Chart of Accounts. Say for instance, the Production Plants are in different Controlling area and using different COA, whereas the Sales companies located in different countries having a Separate Controlling area and Chart of accounts.
I do certainly understand that the system will be very very complex. However, we would like to know if there would be any issues while doing Intercompany transactions like delivering from Production plants to Sales companies / Delivery directly to the customers located in sales company's country.
I came across some write ups saying Cross controlling area costing is not possible.. But would that restrict the Intercompany billing as well?
I do not understand this clearly. Can anyone please explain the Pros and Cons of following the above Org structure.
Thanks
Prasad

Hi
I dont have any doc as such.. But, it will be the usual inter co billing scenario which I am sure, your SD guy would be aware of.. there is no spl process for your case..
In Inter co scenario, you have 2 choices
1. To follow the sale-purchase route
2. To use an inter company STO
in (1), you create SO in seling company and PO in purchasing company... Using IDOCS it can be automated... I am not detailing it here
(1) is used when the Material No is not same in both the companies.... Another drawback of this is that you cannot see Stock in Transit when your goods have been despatched from A but have not reached B
(2) is used when Mat No is same in both the companies... Adv is that you get to see stock in transit till the time B posts Goods receipt in his system
The no of transactions are also less in this case
I personally prefer (2)... Your SD/MM guys wud be aware of both.. I guess you should not worry on that front
Regards
Ajay M

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Inter company postings between 2 different controlling areas

Dear Team,
Is it possible the inter-company postings between two different controlling areas company codes with same chart of accounts?
profit center accounting and New GL is activated for the company codes.
Please provide me the inputs if anybody gone through the above scenario.
Regards,
Ravi

Hi Hrusikesh,
Thanks for your inputs, but when i try to post inter company posting between two different company codes assigned to two different controlling areas through F-02. I am getting the below profit center error is coming.
Profit center aaaa/1234 does not exist for 11.04.2014
Message no. KM700
Diagnosis
The profit center does not exist in master data table CEPC for the date specified.
Procedure
Check your entry. If necessary, you must create the profit center for the date required.
Is it possible the IC postings between two different company codes assigned to two different controlling areas?
how we can meet the above requirement, please let me know if any one of you follow the above scenario.
Regards,
Ravi

Using F-03 and F-04 for Intercompany Postings..

HI Gurus,
We have Debit 3000 and credit 3000 balance for Account:202024(Intercompany Manual Postings).. iam trying to auto clear with F-03 its shwoinng error message.. Use: Document Type GC for Intercompany Postings..trying to use with f-04: Doc Type: GC its possible to auto clear..is there any impact between Doc type : GC and SX: If i Posted with Doc Type SX any other account balance not showing any line items... If Use with doc type:GC line Items are shwoing... how to solve this problem..
regards
JK

solved

Error while assigning Operating concer to Controlling Area

Hi...
while I am trying to assign operating concern to controlling area, the system is showing the following error message.
Diagnosis
Controlling area 7500 and operating concern 7500 have different fiscal year variants (01 and K4). However, for cost center assessment, settlement, and many other types of postings to Profitability Analysis, the controlling area and the operating concern must have identical fiscal year variants, otherwise error messages or serious data inconsistencies can occur.
But i already changed fiscal year variant from K4 to 01 in Operating concern and i run the generate operating concern environment also. still the system is showing the same error message.
Is there anything more i need to do after changing fiscal year variant in Operting concern.
Please help me.
Thank you,
Regards,
Santosh

I have got the solution.
Thank you,
Regards,
Santosh

Fiscal Year Variant in Controlling Area

Hi All,
Scenario 1:
I have a Company code with FYV "A" with 12 Normal Periods and 4 Special Periods(Apr - Mar), and I have another company code with FYV "B" with 12 Normal Periods and 4 Special Periods(Apr-Mar).
Can I assign these two company codes on Controlling Area?
Scenario 2:
I have a Company code with FYV "A" with 12 Normal Periods and 4 Special Periods(Apr - Mar), and I have another company code with FYV "B" with 12 Normal Periods and 4 Special Periods(Jan-Dec).
Can I assign these two company codes on Controlling Area?
Thanks for your help
Best Regards
Swamy

Dear Ranga,
I thought i will give more information.
The fiscal year variants for the company code and the controlling area can have a different number of special periods, but must have the same number of posting periods. The period limits for the fiscal year variants must also match up. In FI, special periods are used for adjustment postings at year-end closing, or for revaluation. If FI has been set up with four special periods, but CO with only one, then the postings for the second, third, and fourth special periods in FI are posted to the first special period in CO. If there is no special period in CO, the FI postings in the special period are posted to the last posting period in CO.
Regards
Assign points

Change Currency Type in Controlling area

Dear Gurus,
We have the following settings in the customizing:
1 - OKKP - Currency Type 20 and Currency key "USD"and flag "Different Company Code Currency is Allowed" set;
2 - Object Currency WBS "10 Company code Currency" "BRL";
3 - OB22 - Currency Type 1st local currency "10 Company code currency -
BRL" and 2nd local currency "40 hard currency - USD";
We would like to change the Currency Type in OKKP of "20 Controlling area currency" for "40 Hard Currency" without modifying the currency key.
That impact this modification can be generate if in the Production System already exists real postings and Settlement to FI-AA?
Thanks,
Elza Silva
Message was edited by:
Elza Aparecida da Silva

SELF Solved.
Regards,
Sharvari Joshi.
Edited by: Sharvari Joshi on Aug 12, 2010 10:44 AM

Deactivate Cost center accounting in controlling area

Hi all,
Could you describe the consequences of the deactivation of CO-CCA in the controlling area?: should I expect incoherencies ?
The activation (deactivation) code setting is free in OKKP transaction. My first deactivation test show me it's possible to make new postings in FI (FB60) and the cost center is not necessary anymore.
In fact in my case I don't need to check FI-CO reconciliation.
Regards
Pascal Cuenin

Hello
Why this type of requirement is coming into our mind. SAP controlling has very good funtionalities for internal reporting. If you deactivate cost center accounting then how your management would see...cost center reporting, budgeting, controlling
for example you have cost element salary,,,,,with one gl for a company,,,how you will distinguish salary with reference to a division , dept, location....
how you will get your assessment, settlement, costing all these for which CO functionalities are developed
regards
dinabandhu

Cross co. code controlling area - CO Real time integration with FI

Hi all of you,
We are in to New GL, and implementing one controlling area for all the company codes (cross company code cost accounting) with group currency "30". And my client requires the CO - FI Real time integration to take the segment reporting / profit center (new) FI reporting.
My basic doubt is, when we are implementing one CO area, we taking all the company codes as cost center groupings and creating the overhead cost centers. When doing Repost CO line items in CO, how system arrives the company code since we are not referring the FI document or Company code, how system will create the FI document in the company code.
Do we have any separate transaction to do the repost CO line items to hit the CO - FI real time integration?
Please give me your valuable suggestions to use the CO-FI real time integration with cross controlling area assigned to multiple company codes.
Thanks & Regards
Ramki

Thanks for your valuable reply Mr. Christian.
So you mean to say that, when we are maintaining the cost center groupings (per company code), same will be maintained for profit center and will be assigned to the individual company codes, right.
In CO - FI real time integration , I need to select the objects - company code and segment. Whenever any repost happened in the CO module, system will create one FI document referring to the real time objects. We have more than 12 company codes located in different countries. In this way, system is fulfilling the cross company code postings in CO and will generate the FI documents, right.
Please give me your valuable suggestion and when I am looking the note in Market place (91055), it is showing the CAD Interface.
Regards
Ramki
Edited by: Ramki on Feb 10, 2010 5:29 PM

S_ALR_87012357, Intercompany Postings

Hello
We have been creating Intercompany postings through use of settings in OBYA successfully. However, for these intercompany postings, which also include a tax code, we are finding that report S_ALR_87012357 for VAT taxes is not successfully picking up the intercompany postings.
I have checked that other postings with the same tax code are included in the report. I have also checked that the intercompany postings have the tax code included in the line item. However, I cannot find an explanation as to why the VAT report is not picking them up. Is there another transaction I need to run or does this report not include intercompany for a reason? Could this be a config problem?
Thanks in advance

Hi Srikanth ,
As you mentioned it is showing the difference ...
Please find attached screenshot ...
Is there a way to correct this ? since its creating an issue& confusing from Finance/Accounting point of view...
Kind regards
Siva..

EC-PCA controlling area settings - Store transaction currency

Hi
Reviewing controlling area settings I found that ckeck "store transaction currency " is off ... could I activate (set on) in a productive client that already has postings ??
This could bring any problems? Or It would be better to activate it at beginning of next year?
Reward points to hepful answers
King Regards

Hi Andres,
It is possible to turn on "store transaction currency" indicator even after data has been posted. It increases the data volume and is relevant for data coming through other modules (has no effect on data posted within PCA). It is strongly recommended to test it before you implement in the production system and also refer to OSS help for any recommendations.
Turning on has effect on the future transactions only and will not change the past data.
Regards
Sharabh Ivaturi

Controlling area setting

Hi,
We have a customer which is a corporate including 2 companies separately in two different countries. it means these two companies have different company currency. My question is whether I need to set one controlling area or two. Please give some clues to consider it. If you have any suggest please tell me. Thanks.

HI,
You can assign two comapnies to a single Controlling area, if:
1. Both have same operating COA.
2. Same fiscal year variant.
You need to decide on what should be your Controlling area currency.
Some of the factors:
1. You need to consider, if Cross-company controlling is required or not.
2. All postings in CO are stored in 3 currencies viz., Co.Area Ccy, Object Ccy & Transaction Ccy. In the case of cross-company code controlling, the currency of the company code is always stored as the object currency. One disadvantage is that all CO reports predelivered by SAP system by default show controlling area currency. This is not a major disadvantage however, as you can use user settings (RCP0 etc.,) to change reporting currency.
3. CO-PA: With Cross-company controlling, you can use only one Operating concern, which means two company codes use same set Characteristics/value fields for margin reporting.
However, the most important factor in your decision should be the processes you require in logistics.
Hope this helps.

Controlling area currency - urgent

Hi,
In a project we are using Controlling Area Currency as INR. As our group company is europe based they want us to change to EUR. We are also using PCA where currency is INR. I want to know the pros and cons of changing the same to EUR from INR.
Bye,
Ramesh

Hello
Check this if it could help you
When you create a controlling area, you specify whether the controlling area currency may differ from the company code currency, and which particular currency is to be the controlling area currency.
You can use the company code currency or the currency of a different organizational unit recorded as a parallel currency in the company code. You can also use a separate controlling area currency not dependent on the company code currency.
Cross-company code cost accounting can therefore be performed for company codes that use values recorded in different currencies. SAP recommends that you specify a consistent parallel currency for the company codes, and use this as the controlling area currency. In this case, postings in Controlling are made that are relevant for Accounting.
The following currencies are valid in Controlling:
· Controlling area currency
The system uses this currency for cost accounting. This currency is set up when you create the controlling area. It is based on the assignment control indicator and the currency type.
(see: Specifying Controlling Area Currency )
· Object currency
Each object in Controlling, such as cost center or internal order, may use a separate currency specified in its master data. When you create an object in CO, the SAP system defaults the currency of the company code to which the object is assigned as the object currency. You can specify a different object currency only if the controlling area currency is the same as the company code currency. There is an object currency for the sender as well as one for the receiver.
· Transaction currency
Documents in Controlling are posted in the transaction currency. The transaction currency can differ from the controlling area currency and the object currency. The system automatically converts the values to the controlling area currency at the exchange rate specified.
The system always translates actual data with the average rate (exchange rate type M).
You store the exchange rate type for each currency. You can specify a different exchange rate type for planning data in the version.
All three currencies are saved in the totals records and the line items. This enables you to use the different currencies for evaluations in the information system. This is only possible if you specified that all currencies should be updated for the given controlling area (see: Maintain Controlling Area).
The transaction currency is USD, the controlling area currency is EUR, and the object currency is SFR (Swiss francs). The system converts the amounts as follows:
1.) From transaction currency to controlling area currency (USD ® EUR)
2.) From controlling area currency to object currency (EUR ® SFR)
The following additional currencies may also appear as controlling area currencies in Controlling if you use cross-company code cost controlling:
Local Currency:
Company code currency (country currency) used for local ledgers in external accounting.
For each company code you can specify one or two parallel currencies (= second and third local currencies) which are stored in the documents and updated parallel to the local currency in the general ledger.
Group Currency:
Currency in which the group balance sheet is displayed.
You can specify it as a parallel currency (additional local currency) for a company code.
Hard Currency:
Secondary currency for countries with high inflation. You can specify it as a parallel currency (additional local currency) for a company code. You need to specify the hard currency in the detail screen for the corresponding country.
Index-Based Currency:
Country-specific, fictitious currency stipulated in certain countries with high inflation for tax returns. You can specify it as a parallel currency (additional local currency) for a company code. You need to specify the index-based currency in the detail screen for the corresponding country.
Global Company Currency:
Currency used in a corporate group. In the CO application component you can create companies to represent divisions, regions, or product groups.
You can specify it as a parallel currency (additional local currency) for a company code. You need to store the global company currency in the detail screen for the corresponding company.
For more information on defining parallel currencies, see Customizing under Financial Accounting ® FI Global Settings ® Company Code ® Parallel Currencies ® Defining additional local currencies.
Reg
*Assign points if helpful

Internal Order: Change Co Code and Controlling Area

Hi,
We have setup internal order -> <i><b>customised</b></i> order type, to store data regarding our projects. The setup involves choosing a Controlling Area which will inherit the Company Code (1:1 mapping between controlling area & co code) once we Create the Order (transaction KO01).
The field Company Code is greyed out and not maintainable.
There is no posting involved. Just for storing data related to the projects (cost centre is defined though).
A problem occurs when our client asked to change the company code field from A to B. I used transaction KO02 and tried to change it from "Environment" -> "Set CO area" but the change is not reflected later once I go into the Master Data screen.
Since the Company Code field is already greyed out in the Master Data screen, I also can't make changes there.
I tried changing the Screen layout (i.e. Order layout) of the field selection in IMG, but also not working.
Does anyone has any other ideas? Many thanks in advance.
Kind regards,
Nik

Since, you have one to one relationship between company code and controlling area, you will not be able to change the company code in order master.
If there are multiple company codes attached to same controlling area, then you need not enter company code in the order master. For this you will need to make company code as optional field in the field status for order type.This will facilitate posting from multiple company codes (attached to same controlling area) to the same order.
If company code is entered and some postings takes place then system will not allow you to change the data.
Regards
Rakesh Pawaskar

I have one controlling area

I have one controlling area I assigned many company codes to that controlling area what is use of assigning comepany codes to controoling area?

Hi Srinivas,
One controlling area can have more than one company code, CO used for internal reporting purpose, Having more than one company code to one controlling area have the following advantages.
1) Cross company code Reporting is Possible.
2) Cross Company code Postings are possible.
To assign more than one company code to one controlling area the following are the conditions.
1) The company codes must use the same chart of accounts.
2) The fiscal year variant of controlling area and the company codes assigned must have the same number of posting periods (NOT SPECIAL PERIODS)
Hope you clear.
Regards
Rama Krishna.A

How to change standard PCA hierarchy for Controlling Area?

Dear all,
I'd like to change standard PCA hierarchy for Controlling Area. System doesn't allow me to do this with the following message:
=====================================
Standard hierarchy CIS for COAr 0700 already contains profit center(s)
Message no. KM160
Diagnosis
You wish to change the standard hierarchy of a controlling area, however, profit centers have already been assigned to the hierarchy. For this reason, you may not change the standard hierarchy for this controlling area.
=====================================
How can I change it?

I will clarify the business requirements behind this request.
We are currently implementing PCA for a customer. However, technically, PCA was already switched on several years ago and it was used for some not-really-accounting customer functionalities (Z* reports) .
So, currently the PCA hierarchy is total mess. No logical heirarchy, a lot of weird profit centers... Not posibly to use this for segment reporting at all. And I would like to sort this out for this project.
Is it possible to reorganize current standard hierarchy? Remove profit centers and profit center groups out of there? Forbid postings?

2 Controlling areas - Intercompany postings

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