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Showing posts from November, 2024

Company Codes, CO Areas & LE

 (1) Every CC is assigned to at least 1 LE and 1 CA. (2) A  Company Code  is always tied to one  Legal Entity  for  legal reporting  and to one  Controlling Area (CA)  for internal cost accounting. However, a  CA  can encompass multiple  Company Codes  if they have the same internal accounting structures (e.g., same fiscal year variant and chart of accounts). (3) Company Codes are for the external financial view, but they also provide feeds into the CA. While  Company Codes (CC)  are primarily responsible for external financial reporting, they also play a crucial role in providing financial data to the  Controlling Area (CA)  for internal management accounting. Here's how this relationship works: Company Codes  record all  financial transactions  (e.g., revenue, expenses, asset purchases) for external reporting purposes. This financial data is then  integrated into the Controlli...