Functional area 

Definition

Account assignment characteristic that sorts operating expenses according to functions, for example:

Use

If you want to use cost of sales accounting, you have to use functional areas to sort your operating expenses.

You define your functional areas in Customizing under Financial Accounting ® Financial Accounting Global Settings ® Company code® Cost of Sales Accounting ® Define Functional Area.

Integration

You can enter the functional area in the master data of various objects: During posting, the system derives the functional area from the master data of the assigned objects. For more information, see Functional Area in Master Data.