Definition of a Business Area
Business areas can be defined independently of other enterprise area structures (like sales and distribution or purchasing) by entering a four-character alphanumerickey and the name of the business area.
To post to a particular business area, you enter its key in the Business area field when entering the business transaction. However, the business area can also be derived from other account assignments, such as the cost center. To do this, you must define the business area in the master record of the cost center. In this instance, you do not need to make an entry in the line item. You can find further information on this topic in the documentation for the Controlling application.
The system updates G/L account balances separately, according to business area. The business area is saved in the individual line items and can be used for reporting purposes.
The defined business areas are valid for all company codes. Therefore, they must have the same meaning in all company codes. If you enter an intercompany document, you can post to different business areas across all company codes. As a result, any number of combinations of company code and business area are possible.
If you want to draw up a balance sheet and a profit and loss statement by business area, you must make sure that the Business area field is contained in all the line items. To do this, you specify in the system that you want to draw up business area balance sheets for a company code.
You determine whether a field is to be required or optional via the field group in the G/L account master record. For more information on field groups, refer to the document FI - General Ledger.