Components of Controlling

Organizational Levels
 Organizational Levels: Operating Concern

Operating Concern is the highest reporting level for profitability and sales and
marketing controlling, and the central organizational unit in Profitability Analysis (CO-
PA) used to segment and structure.

Controlling areas structure the internal accounting operations of an organization

within Controlling. They represent closed units that are used to calculate costs. All
internal allocations relate solely to objects that belong to the same controlling area.
Assignments
 Master Data – Cost Centers
Organizational unit within a controlling area that represents a defined
location of cost incurrence. The definition can be based on:
Functional requirements
Allocation criteria
Physical location
Responsibility for costs

Defines the smallest area of responsibility within the company that

causes and influences costs; the lowest level to which you can
meaningfully assign direct and indirect costs.