Configuring SAP® ERP Financial and Controlling

Business Areas

The function of business areas is to create balance sheets and profit and loss statements below the company code level. Some common uses of business areas are to produce divisional financial statements or SEC segment-level reporting. It is important to note that business area functionality can be duplicated using Profit Center Accounting. The decision to use or not to use business areas should be made early on in the design phase of your project. Many new projects are leaning away from business areas and toward profit centers, but ultimately, the decision is an individual project decision based on what fits in to the overall system design of the project implementation. Some of the deciding factors are the need to report on business ...