SAP ERP Financials and FICO Handbook

1.8 GENERAL CO 65
a clearing account. Either the FI department includes this clearing account in their
periodic run of SAPF123 (automatic clearing program) or the clearing account has
to be cleared in an additional step (menu path: Posting → Acquisition → External
acquisition → Clearing offsetting entry).
139. What is the difference between the COA and the COD?
The COA is the index of G/L accounts. The COA can be global, country specific,
or industry specific, based on the needs of the business. The COD is the index of
depreciation areas. The COD is only country specific. The charts are independent
of each other.
140. Describe the function of depreciation areas.
The COD is the index of depreciation areas. You are maintaining different
depreciation areas to fulfill different accounting needs, e.g., for IAS requirement, IFS
requirements, or tax requirements. In a COD, you should have at least one depreciation
area, e.g., book depreciation areas. A depreciation area contains depreciation
keys, which control how assets will be depreciated.
141. What significance does depreciation key 0000 have?
Depreciation key 0000 is an SAP-delivered key that ensures depreciation and interest
are not calculated and posted. This key can be used for the assets under construction,
such as land.
1.8 GENERAL CO
142. What is a controlling area?
The controlling area is the central organizational unit within the CO module. It
is representative of a contained cost accounting environment where costs and
revenues can be managed.