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Former Member
Sep 15, 2010 at 10:01 AM

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.