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business area and plant

Former Member
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what is the difference between business area and plant although we can treat plant as a business area

Accepted Solutions (1)

Accepted Solutions (1)

Active Contributor
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Plant & Business area are 2 different kind of entities managed by FI & MM

Business area is different lines of operations of a Company. We can create business areas product wise, geographical divisions etc for which we would like to have internal reportings in Finance.

Plants are created in the Logistics (General) module & are assigned to the company code. The R/3 System uses a combination of plant and division to assign the relevant business area.

You can refer below link for more understandings,

[Business Area and Plant |]

Answers (3)

Answers (3)

Active Contributor
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business area is at client level, u can use business areas to "n" company codes and "n" controlling areas also. plant is at company code level and acts as a valuation area.

business area is mainly used for management reporting purpose, u can post transactions of different company codes into same business area


Active Contributor
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Business are is for reporting purpose

like you plant in 3 different city so you can link it under one business area

for this 3 plant you you can take FI report through business area like balance sheet

and i think you know about plant


kailas ugale

Active Contributor
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valuation area is plant or company code but not business area.

plant is assigned to exactly one company code, business area and cocd can have n:n

if you search for business area , you will get much detailed explanaton