Assignment to Business Area 

Use

The business area is another organizational criterion for General Ledger Accounting, in addition to the company code.

Features

If you specify in Customizing for the General Ledger that business area balance sheets should be created for a company code, the system requires that assets be assigned to a business area during master record maintenance. The business area can also be adopted automatically from the cost center that you entered. As long as a fixed asset is assigned to a business area, the system makes account assignment of all postings to this asset to this business area, including depreciation and gain or loss postings on asset retirement.

When certain conditions are met, it is possible to change the business area using the master data transaction (refer to Changes to Master Data). Otherwise, when the business area of an asset changes, you have to manually post a transfer of the asset to a new asset master record.