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 Functional area

Definition

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

  • Production

  • Administration

  • Sales

  • Research and development

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 Start of the navigation path Financial Accounting Next navigation step Financial Accounting Global Settings Next navigation step C ompany code Next navigation step Cost of Sales Accounting Next navigation step Define Functional Area End of the navigation path .

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 .