Difference between Company Code, Cost center and Controlling area?

[Former Member]

Hi Experts,

I am just learning SAP now, I need to know

"Whats the difference and Relationship between Company Code, Cost Center and Controlling Area?" with a brief explanations.

Even i don't have an idea about "how to create a Cost Center"

please reply me with IMG Path(SPRO)

regards

gosammy

[Former Member]

Hi,

its an FI consultant work.

Please look at the following links:

This is the link for Controlling.

[http://help.sap.com/saphelp_erp2005/helpdata/en/02/30793485231774e10000009b38f83b/frameset.htm]

The definition of profit centre is one of the node under the link:

[http://help.sap.com/saphelp_erp2005/helpdata/en/02/30793485231774e10000009b38f83b/frameset.htm]

For the cost centre you can see the following link:

[http://help.sap.com/saphelp_erp2005/helpdata/en/5b/d2200743c611d182b30000e829fbfe/frameset.htm]

create cost center

[http://wiki.sdn.sap.com/wiki/display/ERPFI/HowtocreateaCost+Centre]

[http://wiki.sdn.sap.com/wiki/display/ERPFI/CostCenterAccounting+FAQ]

Regards,

mohammed

[Former Member]

Hi

1.COMPANY CODES:

The company code is usually referred to as a legal entity, which can be defined as the smallest organizational unit for which a complete set of accounts is maintained for external financial reporting. It is used to structure the business organisation from a financial accounting perspective and is necessary for the subsequent configuration of cost centres, and components of the HR structure such as Personnel Areas and Personnel Sub Areas.

2.CONTROLLING AREA

The Controlling Area is the highest organizational unit in SAP and is linked to the company code.

3.COST CENTERS

The Cost Centre is an organizational unit within a Controlling Area that represents a defined location of cost incurrence. Payroll transactions are charged against cost centres in order to allow proper financial reporting and also to allow reporting for managing and analyzing costs.

before you post this types quires please do enough R&D in Google since we have so much info is available there......

Thanks

Cheera