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Regarding business Area

vishpendra001
Discoverer
0 Kudos

Hi All.

Could you please advise me why we are not assigning business area with the company code.

SAP HANA Enterprise Cloud 

SAP Financial Information Management 

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sanilbhandari
Product and Topic Expert
Product and Topic Expert
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Hi @vishpendra001 

IFRS 8 requires that businesses which are publicly traded to enable users of the financial statements to evaluate the various significant different business activities it engages in - Could be product lines or geographies. These segments, product lines etc could cut across multiple legal entities and business area is one of the organizational structures to enable such kind of reporting, assuming that legal entities are represented by company codes in general. 

Hence business area sit at a level above company codes in terms of organizational structure. 

Hope this helps

Thanks & Regards

Sanil Bhandari