Define Functional Area in SAP

Functional Area is a organizational unit in accounting that classifies the expenses of an organization by functions. The
functional area in SAP is use to create P&L A/c in Financial Accounting using Cost of Sales Accounting and used to analyse
the Cost of Sales Accounting. The use of functional areas is optional.
Define Functional Area T Code: OKBD
Path: SPRO > SAP Reference IMG (F5) > Enterprise Structure > Definition > Financial Accounting > Define Functional Area
> New Entries
Steps 1 Enter 4 digit code in functional area field and name of functional area in the description field and save

Steps 2 Enter and Save