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Define Business Area in SAP

The document defines a business area in SAP as a separate area of operations or responsibilities of organizational units used for internal and external reporting. It provides important points about business areas not being assigned to company codes and being used to create financial statements. It outlines the transaction code and steps to create new business areas in SAP.

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satya narayana
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19 views

Define Business Area in SAP

The document defines a business area in SAP as a separate area of operations or responsibilities of organizational units used for internal and external reporting. It provides important points about business areas not being assigned to company codes and being used to create financial statements. It outlines the transaction code and steps to create new business areas in SAP.

Uploaded by

satya narayana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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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
1. This is an optional organizational unit, so it is not mandatory to define the
business area in SAP systems
2.  Business areas are not assigned to any company codes.
3. Using business area organizational units, the statements of Profit and
Loss, Balance sheets
4. 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

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