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Configuration of Functional Area in SAP FICO | Define Functional Area

Functional Area in SAP

Definition of  Functional Area in SAP :- Functional Area is a organisational unit in accounting that classifies the expenses of an organisation by functions.

Uses of  Functional Area :-

TheFunctional area in SAP is use to create P&L  A/C in Financial Accounting using cost of sales accounting and used to analyse the cost of sales accounting

Examples of Functional Area are :-

  • Administration
  • sales and distribution
  • Manufacture
  • Production
  • Research and development

Steps for the Creation of Functional Area in SAP

Transaction code :-  OKBD

SAP Menu Path :– SPRO > SAP Reference IMG > Financial Accounting > Financial Accounting Global Settings > Company Code > Cost of Sales Accounting > Activate  Cost of Sales Accounting for Preparation

Step 1 :–  Enter T-Code OKBD in the commend filed


Step 2 :– In the Next screen Click  New Entries

Functional area entriesStep 3 :- Enter four digits Functional area code in the Functional Area column and update names of the Functional Areas

functional areas

Thus Functional Areas ADPR, ADSO are created in SAP.