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 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. |
After 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.