True or False: An operating concern is assigned to a company code.

The statement is false because an operating concern in SAP is not assigned directly to a company code. Instead, it is linked to controlling areas, which can encompass one or more company codes. The operating concern is primarily relevant for profitability analysis, where it supports reporting on profit and loss across the various segments of a business.

It’s essential to understand that while company codes represent the legal entity within financial accounting and can have one or more controlling areas assigned to them, the operating concern is focused on profitability and is configured to aid in strategic planning and operational decision-making. This distinction is critical within the SAP environment as it influences how financial and controlling data is structured and reported. Thus, an operating concern serves a broader purpose than just company-specific reporting.