How To Fix KEO407 - Controlling area &2 and company code &3 are incompatible

SAP Error Message - Details

• Message type: E = Error

• Message class: KEO - Enterprise Organization

• Message number: 407

• Message text: Controlling area &2 and company code &3 are incompatible

What causes this issue?

You want to assign company code &V3& to organizational unit "&V4&".
However, in the enterprise organization this unit is assigned to
controlling area &V2&, whereas in CO Customizing, company code &V3& is
assigned to controlling area &V1&.

System Response

The system cannot carry out the link between company code &V3& and
organizational unit "&V4&" because the controlling areas assigned are
different in each case.

How to fix this error?

Use a different company code or assign company code &V3& to a different
organizational unit whose controlling area is the same as &V1&.

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KEO407 - Controlling area &2 and company code &3 are incompatible ?

  The SAP error message KEO407 indicates that there is an incompatibility between the controlling area and the company code specified in your transaction. This typically occurs when you are trying to perform a transaction that involves both a controlling area and a company code that are not properly linked or configured in the system.
  Cause:
  
  Incompatible Configuration: The controlling area and company code may not be assigned to each other in the system configuration.
  Different Settings: The controlling area and company code may have different settings, such as currency or fiscal year variant, which can lead to incompatibility.
  Incorrect Data Entry: The user may have entered the wrong controlling area or company code in the transaction.
  
  Solution:
  
  
  Check Configuration:
  
  Go to the SAP Customizing Implementation Guide (SPRO).
  Navigate to Controlling -> General Controlling -> Master Data -> Controlling Area -> Assign Company Code to Controlling Area.
  Ensure that the controlling area is correctly assigned to the company code you are using.
  
  
  
  Verify Settings:
  
  Check the settings for both the controlling area and the company code to ensure they are compatible. This includes checking the currency, fiscal year variant, and other relevant settings.
  
  
  
  Correct Data Entry:
  
  Double-check the transaction data you are entering. Make sure that you are using the correct controlling area and company code.
  
  
  
  Consult Documentation:
  
  If you are unsure about the configuration or settings, refer to the SAP documentation or consult with your SAP administrator or functional consultant.
  
  
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes like OX19 (for company code) and OKE5 (for controlling area) to check and modify the settings.
  SAP Notes: Check for any relevant SAP Notes that may address specific issues related to this error message.
  User Roles and Authorizations: Ensure that you have the necessary authorizations to view and modify the controlling area and company code settings.
  
  By following these steps, you should be able to resolve the KEO407 error and ensure that your controlling area and company code are compatible for the transactions you are trying to perform.