In SAP Controlling, the statement that the currency of the controlling area must always be the same as the currency of the company code needs to be evaluated. Which option best describes this statement?

Introduction / Context:
In SAP Controlling, the controlling area is an organizational unit that represents a closed system for cost accounting. Company codes are assigned to a controlling area so that costs and revenues can be planned and analyzed across one or more legal entities. Each of these objects has a currency. A common exam question and real project concern is whether the currency of the controlling area must always match the currency of the company code or whether they can differ. Understanding this relationship is essential for designing cross company controlling structures and for answering certification style questions correctly.

Given Data / Assumptions:
- The statement claims that controlling area currency must always equal company code currency. - We are working in standard SAP Financials and Controlling. - A controlling area can have one or more company codes assigned. - Currency types in SAP can be defined differently for controlling and for general ledger.

Concept / Approach:
SAP allows flexibility in currency settings. The controlling area can have its own currency that is independent of individual company code currencies. For example, a multinational group might define the controlling area currency as a group or corporate currency, while individual company codes use their local currencies. When postings are made, the system translates amounts from the company code currency into the controlling area currency using exchange rates. This design supports group wide controlling while maintaining legal reporting in local currency. Therefore, the statement that the currencies must always be the same is not correct in general.

Step-by-Step Solution:
Step 1: Recall that a controlling area can be assigned to one or multiple company codes. Step 2: Consider that in cross company controlling scenarios, company codes may have different local currencies. Step 3: Recognize that the controlling area needs a single currency for cost accounting, which is often defined as a group currency rather than any one local currency. Step 4: Understand that SAP supports currency translation between company code currency and controlling area currency at posting time. Step 5: Conclude that the statement insisting the two currencies must always be the same is incorrect.

Verification / Alternative check:
A practical verification is to imagine two company codes, one in India and one in the United States, assigned to the same controlling area. The Indian company code may use INR and the US company code may use USD. The controlling area can be set to use a different currency such as EUR as a group currency. SAP handles translation between INR, USD, and EUR via exchange rate tables. Since this configuration is supported and commonly used, it clearly shows that the controlling area currency does not always have to be the same as each company code currency.

Why Other Options Are Wrong:
Option A: This claims the statement is always correct, which contradicts the standard flexibility available in SAP. Option C: Parallel ledgers are related to General Ledger accounting and do not impose a rule that controlling area and company code currencies must always match. Option D: The relationship between currencies is not conditional upon the number of company codes assigned to the controlling area.

Common Pitfalls:
One common misunderstanding is to assume that matching currencies simplifies reporting and therefore is always required. While it may simplify certain calculations, SAP is designed to handle multiple currencies simultaneously. Another pitfall is to confuse the logical requirement of comparable values with a technical requirement for identical currencies. The system handles comparability through currency translation, not by forcing identical currencies everywhere. Always distinguish between configuration options that are recommended for simplicity and hard requirements enforced by the system.

Final Answer:
The correct answer is The statement is incorrect because the controlling area currency can differ from the company code currency.