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

 ❖ 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

SPRO

Click on SAP Reference IMG

Enterprise Structure
Definition

Financial Accounting

Define Business Area

Click on New Entries

Provide Details and click on SAVE

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

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

Hope this Document will be useful.

Vijay Mutyala (https://www.linkedin.com/in/vijay-mutyala/)

Please check other SAP FICO documents, links are given below.

Day1: Create Company.

Link: https://www.linkedin.com/feed/update/urn:li:activity:7043450666287050752/

Day2: Create Company Code

Link: https://www.linkedin.com/feed/update/urn:li:activity:7043855931838758913/

Day3: Company Code and Company Assignment

Link: https://www.linkedin.com/feed/update/urn:li:activity:7044162997312761856/