Define Controlling Area, Cost Center - OKKP/KS02

Define Controlling Area, Cost Center – OKKP/KS02

Controlling Area – OKKP

It is the highest organizational unit in the SAP Controlling module. It is mainly used for cost accounting. You can assign one or more company codes to a single CA and a company code can be assigned to only one CA.

There are three steps in maintain CA,

1. Basic data

2. Assignment of company codes

3. Activate components/Control Indicators

Step 1: Basic Data

Transaction code is OKKP

Initial screen for maintain controlling area

Click the New Entries.

Basic data screen for maintain controlling area

CA : 1959

Name : RKS Plant

CoCd – CO Area : 1 Controlling area as same as company code

Currency Type : 10

Currency : INR

Chart of accts : INT (will change later on our own Fiscal Year Variant)

Fiscal Year Variant : K4 (will change later on our own Fiscal Year Variant)

CCtr Std. Hierarchy : 1959.

Fill all the fields as shown in the image and press Enter.

Note: The chart of accounts and Fiscal Year Variant need to be changed after we create our own.

Standard hierarchy creating screen for maintain controlling area

Click the Yes button.

Click the Continue button.

Step 2 : Assignment of company codes

Click the Position to select our CA

Enter our controlling area as created just before and click the Continue button.

Select our controlling area and then double-click the Assignment of Company Codes as shown in the image.

Click the New Entries.

Enter our Company Code and press Enter. It will display our company code and click the Save button as illustrated in the image.

Step 3: Activate the Components/Control Indicators

Select our controlling area and double-click the Activate Components as shown in the figure.

Fill the fields as illustrated in the figure and press Enter

Click the Continue button.

The Controlling Area 1959 – RKS Plant has now been created.

Define Cost Center – KS02

In SAP, a Cost Center functions as an organizational unit within a Controlling Area, signifying a particular location or department where expenses are generated.

It is a part of a company that helps keep track of how much money is being spent. It show different areas, departments, or jobs in the company where different kinds of costs happen.

It is defined as ten-digit alphanumeric code.

spro-sap reference img-sap customizing implementation guide-enterprise structure-definition-controlling-create cost center-KS02

Select the highlighted as shown in the image to create.

Double click the highlighted as illustrated in the image.

Give our company code and click the Continue button.

Give the new name as 1959 as illustrated, Valid From Date and To Date as shown in the figure and press Enter.

Fill the required fields as shown in the figure and press Enter. System will give warning and ignore that warning and again press Enter and then click the Save button.

The Cost Center 1959 – RKS Plant has now been created.

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August 29, 2026