Define Business Area in SAP
Definition of Business area:- Business area is a separate area of operations or responsibilities of organizational units of financial accounting that is used for internal and external reporting. Different divisions of each business within a legal entity are created as Business areas for reporting of each operational area. So Financial statements can be created for each business area and these financial statements can be used for internal reporting purposes.
Business Area in SAP – Important Points
- This is an optional organizational unit, so it is not mandatory to define the business area in SAP systems
- Business areas are not assigned to any company codes.
- Using business area organizational units, the statements of Profit and Loss, Balance sheets
- You can define the business area with 4 characters and the same company code be used for the business area key.
Transaction Code for Creation of Business Area in SAP:- OX03
Steps for the Creation of New Business Areas in SAP:-
Step 1:- Enter transaction code SPRO in the commend field
Step 2:- Select SAP Reference IMG ( Shortcut key F5 )
Step 3:- After selecting SAP Reference IMG, follow the below structure to configure the Business areas
Step 4:- After Selecting Define Business Area, Select new entries to configure new Business areas
Step 5:- Enter the 4 digit code in the business area field enter the name of business areas in the description field and save the settings.
Thus Business Areas ADKA, ADHY, ADMU are configured in SAP FICO.
Learn: How to create business areas in SAP S4 Hana.