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Business Area Creation

in SAP
Business Area:
Organizational unit of external accounting that corresponds to a specific business
segment or area of responsibility in a company.

• When the company/organization [COMPANY] is doing business in multiple


countries, we represent each country with one COMPANY CODE
• Within the country if we do business in different regions ( like SOUTH , NORTH
) then we represent each region as BUSINESS AREA

COMPANY

COMPANY CODE

SOUTH NORTH EAST WEST

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• Or if the COMPANY is having different businesses within COMPANY CODE like
Manufacturing, Services then each business is represented like one BUSINESS
AREA

COMPANY

COMPANY CODE

MANUFACTURING SERVICES

Creation process:
Path: SPRO -> SAP Reference IMG -> Enterprise Structure -> Definition -> Financial
Accounting -> Define Business Area
Transaction Code: OX03

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SPRO

Click on SAP Reference IMG

Enterprise Structure

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Definition

Financial Accounting

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Define Business Area

Click on New Entries

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Provide Details and click on SAVE

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Before SAVE, check the data in Table TGSBT (Business Area information will be stored in
this)
As of now, no entry is there for Business Area – ABCS ( ABC SOUTH )

Now SAVE Business Area.

Now check the entries in table TSGBT

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This is how we create / define Business Area in SAP.

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