Derivation of the Functional Area

Use

So that expenses can be grouped by functions, the system derives the functional area during the following postings:

  • Primary postings (postings in Financial Accounting) to an income statement account

  • Secondary postings (allocations in Controlling)

Note Note

The system derives the functional area for both objects involved in an allocation.

End of the note.

The system does not derive a functional area in the following cases:

  • Postings to balance sheet accounts

  • Entering statistical key figures in Controlling

Prerequisites

For it to be possible to derive the functional area when a posting is made, you have to activate cost of sales accounting for the company code in which you are making the posting. For more information, see Activating Cost of Sales Accounting.

Features

The system derives the functional area when you enter a document. The system determines the functional area based on the information in the coding block. The functional area is displayed on the entry screen.

The derivation follows this sequence:

  1. The system derives the functional area from the master records of the objects being posted.

    If there is account assignment to an object during a posting, the system checks if a functional area is entered in the master record of the object. The system stores this functional area temporarily.

  2. The system derives the functional area from the master record of the G/L account.

    The system checks if a functional area is entered in the master record of the income statement account. This functional area overwrites the one derived from the account assignment object.

  3. The system derives the functional area by means of the substitution for the Financial Accounting component, event 0006. If a functional area was already determined, it is overwritten by the one from the substitution.

    You are required to define a substitution in the following cases:

    • If you can't enter a functional area in the master data of an object, such as a business process or a real estate object

    • If you want to define exceptions, where you don't want the derivation to be made from the given object

Note Note

If you deselect the Determine FArea on Entry Screen indicator in Customizing for Financial Accounting (New) under Financial Accounting Global Settings (New) → Tools → Customer Enhancements → Enhance Determination of Functional Area, then the functional area is not derived until after the document is saved, and it does not become visible in the document until then. For this derivation of the functional area, the substitution for the Financial Accounting component, event 0005 is used.

End of the note.