Business area Notes

1. over and above company codes

2. used for external segment reporting
3. Based on significant area of operation for example product lines or branches of a business enterprise.
4. All essential balance sheet items such as fixed assets receivables payables inventories and all profit and loss items can
be assigned directly to a business area.But bank capital and taxes cannot be assigned directly it has to be assigned
manually.
5. Business area financial statements cannot be drawn for commercial or tax laws.
6. It is for internal reporting purposes only.
7. For example a garment is a business area and it has spinning weaving two company codes under it.
8. If we enable business area balance sheet here then for all the GL accounts business area will popup for input.
9. If we want only a few GL account should ask for business area then for that GL account choose the field status variant
where business area field is declared as must etc.,
10. Thus business area balance sheet is not fully complete with double entry.
11. If we enable business area balance sheet then irrespective of the field status of the individual GL account the business
area field will popup for input
12. Define a business area and name it
13. Define a consolidated business area and name it
14. One consolidated business area may have many business area under it
15. One business area may be assigned to one consolidated business area only.
16. If business area balance sheet is enabled for each GL entry it asks for business area. We can give different business
area for the same company code. The company code is not attached to the business area. It comes as a popup in GL
account. So we can enter any business area. We get reports based on business area where it gets partial or full figures
form one or more company codes.
17. In field status variant there is one field business area .we can suppress it or require or optional it. Choose that field
status group, which make the business area filed to our likes for a particular GL account.
18. Make a field status group and name it and declare the 50 fields according to our choice and make as many field status
group as we want in any combination of 50 fields and then attach the group to each individual GL accounts according to
our requirements judiciously and make the best use of it.
19. Organizational unit of external accounting that corresponds to a specific business segment or area of responsibility in a
company.
20. Movements in value entered in Financial Accounting are assigned to business areas.

21. Financial statements can be created for business areas for internal purposes.
22. The definition of the business area organizational unit is optional.
23. Business areas are used in external segment reporting (over and above company codes), based on the significant areas
of operation of a company (for example, product lines, branches).
24. If you have defined business areas, the transaction figures for the G/L accounts are managed separately for internal
evaluation purposes. You can therefore create internal financial statements for business areas.
25. Many business areas can be attached to one company code.
26. One business area can be assigned to more than one company code
27. Business area is a subordinate to a company code.
28. If you want to create financial statements for business areas, you must make sure that the Business area field is ready
for input in all the line items. Enable Business Area Balance Sheet.