Functional Areas 

Definition

A functional area is an account assignment characteristic that sorts operating expenses according to functions. For example:

·        Production

·        Administration

·        Sales

·        Research and development

Use

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

You define your functional areas in Customizing for Financial Accounting (new) under Financial Accounting Global Settings (New) → Ledgers → Fields → Standard Fields → Functional Area for Cost of Sales Accounting → Define Functional Area.

Integration

You can add the functional area to 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 Deriving the Functional Area.