Saturday, May 21, 2011

What is a business area? Can you assign it to a company

The business are is an organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in financial accounting can be allocated.
Business areas are used in external segment reporting [over and above company codes] based on the significant areas of operations [for external, product lines] of a business enterprise. A segment is an isolated area of activity.
The business area will not be assigned to any company code. It is available at the client level. All company codes under the same client can use the same business areas. You can restrict a business area for a company code through validation.

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