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What are the organizational elements in sap FI and describe ?

Home → INTERVIEW QUESTIONS → What are the organizational elements in sap FI and describe ?

The Important organizational elements in SAP FI are

  • Company Code
  • Business Area
  • Chart of Account
  • Functional Area

Company code is the Smallest Organization unit for which independent financial statements can be carried out. Balance sheets and profit & loss statements can be created at the company code level as required by law. Business transactions are processed at each company code level.

A business area is a separate area of operations or responsibilities of organizational units within a company code and 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.

The chart of accounts ( COA ) is a list of GL accounts master records that are used by the organization. A chart of accounts must be assigned to each company code

A functional area is an organizational unit in accounting that classifies the expenses of an organization by functions. The functional area is used to create P&L A/C in Financial Accounting using the cost of sales accounting. e.g. of functional areas are

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