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Activate company code validation for cross-company-code cost controlling

Former Member
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Hello all,

My company has one single controlling area which links to multiple company codes. We also have company code validation activated (OKKP). Currently we are thinking about deactivating the feature so that we could use the same cost center across multiple company codes.

Can someone tell me what is the implication of deactivating the company code validation flag?

Regards,

Cassandra Wong

Accepted Solutions (1)

Accepted Solutions (1)

Former Member

Hi, also document splitting couldn't be activated if validation switched of.

About activation it back-is it possible to do, but for new fiscal year.

And also possible in current(if you have current data) but if CO-FI not switched on

Answers (1)

Answers (1)

Former Member
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Hi Cassandra,

that will not allow you to link a cost centre to mulltiple Company codes, in fact, nothing will.

It is one of the very basic assumption in CO that a cost centre only belongs to one legal entity.

How will you know to which legal entity a posting on a cost centre belongs, if a cost centre is linked to multiple legal entities?

Former Member
0 Kudos

Hi,

I understand that from the master data's perspective, I could only link a cost center to a particular company code. What I really want is to be able to post to this cost center from multiple company codes. For example, there are 2 different company codes (C001 and C002) assigned to a single controlling area. Cost Center X001 is assigned to Company Code C001. What I would like to do is to be able to create journal entry in both company codes using the same cost center.

If you take a look at the configuration in transaction OKKP, there is a Company Code Validation Flag. When this flag is checked, posting can only be made from the company code defined in the Cost Center master data. If this flag is unchecked, postings can be made from any company codes that is assigned to that Controlling Area.

Currently we have this flag checked. I would like to know the implication of turning this flag off in Production. Do I have to worry about data or system integrity?

Any advise would be greatly appreciated.

Regards,

Cassandra Wong

ajaycwa1981
Active Contributor
0 Kudos

Hi

Technically, it is achievable... If you deactivate the Flag in OKKP - You can use the same Cost Center in Comp Code B as well

However, I would strongly advise against this.... If your cost center No is ABCD and Comp Codes are 1001 and 1002 - you better create 2 cost centers as 1001ABCD and 1002ABCD....

I think, with the data existing in Production System, this flag cant be deactivated... However, you can check and try to deactivate it in a test client

Personally, I would advise against this

br, Ajay M

Former Member
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HI Cassandra,

I agree with Ajay, you are most likely not going to be bale to switch of the indicator, unless you get consulting help from SAP.

The problem though, is that posting across company codes usually has VAT implications. If this is a Chinese implementation, you would probably influence the entries that need to go to the Golden Tax System.

Former Member
0 Kudos

Hi ,

Pls Kindly ,

what is the process to activae company code validation for cross company code

thank ,

Jeetendra