When you create a Controlling Area, Profitability Analysis is not automatically activated. If you want to use Profitability Analysis function of SAP, then it should be activated. Note that Profitability Analysis still not active upon creation of the Controlling Area, as shown in this screen shot:

To activate the Profitability Analysis, follow this helpful and effective instruction:
Transaction code: KEKE
Path: IMG → Controlling → Profitability Analysis → Flows of Actual Values → Activate Profitability Analysis.
The Change Veiew “CO-PA: Active Flag for Profitability Analysis”: Overview screen appears. Choose ’2′, code for Profitability Analysis Active. Then save your entry.
Note that Profitability Analysis in the Controlling Area is now active, as shown in this screen shot:
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