In business area scenarios you set up a business area for each strategic business unit in an enterprise. Legally-independent enterprises are represented by a company code.

The following graphic shows a section of the organizational structure of an R/3 system for an enterprise that consists of three legally-independent companies and is active in three strategic business units.

A company code has been set up for each legally-independent company. Strategic business units are represented by business areas. Each strategic business unit is active in all three legally-independent companies, that is, you can assign all three business areas to all company codes.