Business Area

[suresh_05]

Can anyone please help me out about Business Area whether we need to create it present. Some of the guys saying currently there is no need to create Business Area?

[AmlanBanerjee]

Suresh,

Configuring Business area is quite simple, but you need to think of all the processes, in a scenario, where there is a movement of business area at the master data level

What is your business case for the creation of Business area?

Do you want to segregate certain customer segments using Business Area in FICA for triggering actions for Business process or, its solely for Financial reporting purpose?

Thanks,

Amlan

[former_member406383]

Hi Suresh,

Business Area is basically used to used to identify the areas of operations. This is important to ensure consistency in document postings, where we need to specify business areas. Alternatively, it is also important for reporting purposes.

Consider this like the case where we have a country US, where with 50 states, and each state has its own identity. We therefore need to create a business area for each state for determining the postings coming for the associated master data from that region.

Business area needs to be configured in FI (Enterprise Structure > Definition > Financial Accounting > Define business area) and defined at the master data level (Contract Account) and during document postings.

Hope this helps !

Thanks,

Anand