What is Business Area in SAP

In SAP, business area is smallest internal organizational unit with in a company code used for external reporting. Generally different divisions of business with in a legal entity are created as business area to generate the reports for each division of business.

The creation of business area in SAP is an optional
 The Financial statements can be prepared for business areas
 To post items in business area, it is required to enter the business area key when you are making transactions.
 The business area can be any geographical area or product wise as per the requirements of client.
 You can define one or more business areas as per the requirements of business
 The business areas should be assigned to consolidated business area, if the company following consolidation business area.
 Business Area Data Base Tables – TGSB, TGSBT

Define Business Area in SAP – Configuration steps

To define business area in SAP, follow the configuration steps.

  • Transaction code: OX03
  • SAP Navigation Path: SPRO  > Enterprise Structure > Definition > Financial Accounting > Business Area

Business Area in SAP Configuration Values

Business Area Description
ABC1 ABCD Business Area Bangalore
ABC2 ABCD Business Area Hyderabad
ABC3 ABCD Business Area Mumbai
ABC4 ABCD Business Area New York
ABC5 ABCD Business Area Chicago

Step 1 : Enter SAP T-code “OX03″ in command field and press enter.

Step 2: In the next screen, change view business areas” screen, click on new entries button to define business areas in SAP.

Step 3: On new entries business area, enter the following details.

Business Area : Update 4 digits alphanumeric key that identifies as business area in SAP.
Description : Enter the text of business area, allowed to enter upto 30 alphanumeric characters.

Define Business area in sapAfter configuring all the required details for business area in SAP, choose save icon to save the configured business area detains in SAP system.

Now the system open a popup message to choose the customizing request number, choose the request and save the configured details.