SD Business Area

A business area is a subdivision of a company code for accounting purposes. You can draw
financial reports based on the business area. If the FI (Finance) team decides to use business
areas, every transaction in SAP is assigned to a business area in the same way it is assigned
to a company code.
For example, Company Acme produces and sells widgets from two different plants.
They want to draw financial reports for each plant. You would define two business areas
and then make the assignment based on the plant. Whenever a sale happens out of one of
the plants, the transactions are assigned to its sales area. You can review the financial
reports for each of the plants separately, or together for the company.
Business areas can be assigned based on the plant and division, or based on the sales
area. You need to choose one way of assigning the business area. Then you can assign the
business area created in the FI module to either the plant and division, or to the sales area.
Business areas are assigned from the following menu path:
Menu Path IMG | Enterprise Structure | Assignment | Sales and Distribution | Business
Area Account Assignment