Business Area

BUSINESS AREA

This page contains the following topics :

1. Configuring Business Area

2. How it link to Company Code (Functional view)

3. How it link to Company Code (Technical View)

1. Creating Business Area :

Organizational unit of external accounting that corresponds to a specific business segment
or area of responsibility in a company. Financial statements can be created for business
areas for internal purposes. The definition of the Business area is optional.

It is used in external segment reporting (over and above company codes), based on the
significant of areas of operation of a company ( for example, product line, branches ).
You can create financial statements for business areas, and you can use these statements
for various internal reporting purposes.

2.1. First Screen (Creating Business Area)

Menu Path : IMG Menuà Enterprise Structureà Definition à
Define Business Area
T-Code : OX03

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 Business Area

Tips : The definition of Business area organizational unit is optional

2.2. Second Screen (Creating Business Area) ………Continuing..

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 Business Area

2.3. Third and Last Screen (Creating Business Area)

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 Business Area

Fields of this Screen

a) Business Area : (Code of the business area. It can be alpha-numeric)

N201 Security
N202 Audio System

b) Description : ( Description of business area)

HOW IT IS LINKED TO COMPANY CODE ( FUNCTIONAL VIEW)

Note :

1. One company code can be divided into several business areas.

2. One business area may be used in several company code.
3. It is only used to provide in-house information in SAP R/3 system.

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 Business Area

HOW IT IS LINKED TO COMPANY CODE ( TECHNICAL VIEW)

In chart of accounts, Fiscal Year, screen variants, company etc are assigned to Company
code to link each other, but incase of Business area, we do not assign it to company code.
We specify the business area while entering the General Ledger documents.

See bellow a part of general ledger document entry screen to SAP system.

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ORIGINAL NOTES FROM SAP

Define Business Area

In this section you create business areas. A business area is an organizational unit within
accounting that represents a separate area of operations or responsibilities in a business
organization.

When defining a business area, you enter a four-character alphanumeric key and the name
of the business area.

In a client, you can set up several business areas to which the system can assign the
postings made in all company codes defined in this client. To ensure consistency in
document entry, you should give business areas the same name in all company codes.

You make all other specifications for your business areas in the Financial Accounting

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Implementation Guide.

Activities

If necessary, create business areas.

Further notes

For more information about business areas, see Financial Accounting -> The Business
Area in the R/3 Library.

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