Activate company code validation (CO area &1 / fiscal year &2)

What causes this issue?

Company code validation is inactive in CO area &v1& for fiscal year &v2&
(and possibly subsequent years).

System Response

Cross-company cost assignment is only possible for external postings<(>
,<)> such as material consumption in SAP S/4HANA Finance.

How to fix this error?

Activate company code validation (IMG activity
<DS:SIMG.SIMG_CFMENUORK3OKKP>Maintain Controlling Area</>). You can
either change the control indicator of the existing record or create a
new set of control indicators for the new fiscal year.

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.