CONTROLLING AREAThe controlling area is an organizational unit within an enterprise for which complete, self-contained cost accounting can be carried out. A controlling area can cover one or more company codes. The associated company codes must all use the same operative chart of accounts.
The plant is an organization unit within logistics that subdivides the enterprise for the purpose of production,procurement,maintanance and materials planning.In a plant materials are produced and/or goods and services are made available.
An organizational unit-allowing the differentiation of material stocks within a plant.All data referring to a particular storage location is stored ar storage location level.
A purchasing organization is an organization unit within logistics an enterprise according to the requirement of purchasing.A purchasing organization procures materials or services,negotiates conditions of purchase with vendors,and assumes responisbility for such business
You specify the form of procurement by assigning purchasing organizations to company codes and plants.There are following forms of procurement
There can also be mixed forms.