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enterprise structure -->defination --. financial account --->
define bussiness
area
select new entries
and update -----save
Business area is associate org. unit within which the
corporate codes ‘ operations occur.
Business area isn't appointed to any company code however
the business area is given whereas posting to a corporation code manually.
The operate of a
business area is to form balance sheets and profit and loss statements below
the corporate code level. Some common uses of business square measure to
provide divisional money statements or SEC segment-level reportage. it's vital
to notice that business area practicality is duplicated exploitation profit
center accounting. the choice to use or to not use business areas ought to be
created early within the style section of your project. several new comes
square measure leaning aloof from business areas and towards profit centers,
however ultimately, call| the choice} is a private project decision supported
what fits within the overall system style of the project implementation. a
number of the deciding factors square measure the requirement to report
business lines across company codes, the requirement for full balance sheets at
the divisional or product level, furthermore because the price and therefore
the advantages of business areas versus profit centers.
Business square measure as are freelance of the other FI
enterprise structure. Therefore, business square measure as are designed to
chop across company codes. a typical mistake that some corporations create is
to force matched relationship defeats the complete purpose of business areas.
the aim of business areas is to be ready to report on similar activities that
occur across company codes. there's no residual profit to configuring business
areas in this manner. As a matter of reality, it typically causes lots of
reconciliation issues as a result of business areas don't seem to be joined to
company codes in commonplace configuration.
In this screen enter alphanumeric symbol for the business
(up to four char) square measure and outline
Saks attire has determined to use 3 business areas. The
chief financial officer has determined that he would really like a
cross-company record for each the attire and textile industries within which
Saks attire conducts enterprise. so as to raised track non-value-added body
assets and expenses, the services business area was created. The new shared
services department that gives centralized administration functions for the
organization is being enforced as a part of the business method reengineering
effort portion of the SAP project implementation. it's vital to recollect that
the concept is for all company codes to share all the business method
reengineering effort portion of the SAP project implementation. it's vital to
recollect that the concept is for all company codes to share all the business
areas. The one exception is that the accounting department desires to make sure
that postings one explicit company code square measure solely denote to 1
explicit business area.
Although Business Areas don't seem to be joined to the other
FI Enterprise Structures, they'll be joined to different structure components
within the system.
