QUERRI

[Former Member]

HI

I HAVE A DOUBT REGARDING FICO PART

1.WHAT DO U MEAN BY CONTROLLING AREA & BUSINESS AREA ?

THANKS&REGARDS

PUSHPA

[Former Member · Accepted solution]

Hi Kolla......

Just look at the example ......i think it will help you in all ways........

A company is there named as HONDA Motorcycle & Scooter

It produces Motorcycles & Scooters in two different plant......so the thing is Company Honda has two Business Areas as Motorcycle & Scooter.......but their costs final settlement/acccumulation is at Honda Motorcycle & Scooter.........So

Honda Motorcycle & Scooter is Controlling Area

Motorcycle is One & Scooter is second Business Area.

Controlling Area consists of Business Areas......One controlling area can have n numbers of business areas but vice versa is not possible.....

In Controlling Area, which is CO part, we look at the overall works but in business area we look at particular work.

Regards

[Former Member]

Hi Pushpa

Business area:

An organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in Financial Accounting can be allocated

Controlling area:

An organizational unit within a company, used to represent a closed system for cost accounting purposes.

A controlling area may include single or multiple company codes that may use different currencies. These company codes must use the same operative chart of accounts.

Regards

Seenu

Reward if it useful