The Important organisational elements in SAP FI are
- Company Code
- Business Area
- Chart of Account
- Functional Area
Company code is a 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 per required by law. Business transactions are processed at each company code level
Business area is a separate area of operations or responsibilities of organizational units with in a company code and used for internal and external reporting . Different divisions of each business with in a legal entity are created as Business areas for reporting of each operational areas.
The chart of accounts ( COA ) is a list of GL accounts master record that are used by the organisation. A chart of accounts must be assigned to each company code
Functional Area is a organisational unit in accounting that classifies the expenses of an organisation by functions. The functional area is use to create P&L A/C in Financial Accounting using cost of sales accounting. e.g of functional areas are
- Administration
- sales and distribution
- Manufacture
- Production
- Research and development