object class (CO)
Example: Controlling (CO)
The object class categorizes Controlling objects according to their
business function and enables you to analyze cost flows within Controlling from different business perspectives.The following object classes are available:While certain object types automatically belong to a particular class
(for example, cost centers belong to the "Overhead" class), others need
to be explicitly assigned to an object class in their master record
(this is the case with internal orders and work breakdown structure elements, for example).In addition to the functional area, the object class is required to
determine or explain certain values in the external accounting components.The balance of all objects in the Production class is categorized as Work in Process (WIP).
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Source: https://help.sap.com/doc/saphelp_glossary/latest/en-US/35/26b622afab52b9e10000009b38f974/content.htm