Controlling area is the highest organizational unit in Controlling.
Controlling Areas contain the internal structure of an organization.
Controlling Areas contain the operational results from the associated company codes.
All operational postings within a company code must be assigned to a controlling object (e.g., cost center, Internal Order etc.).
The Controlling Area contains a hierarchy of controlling objects to collect and report operational information (e.g., Cost Center hierarchy, Profit Center hierarchy).
Multiple hierarchies or groups can be created to support various reporting requirements.
When multiple Company Codes are assigned to a Controlling Area, all Company Codes must use the same Operational Chart of Accounts.