Configuration of Functional Area in SAP FICO | Define Functional Area

Functional Area in SAP

Definition of  Functional Area in SAP:- Functional Area is a organisational unit in accounting that classifies the expenses of an organisation by functions.

Uses of  Functional Area :-

TheFunctional 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

Examples of Functional Area are :-

  • Administration
  • sales and distribution
  • Manufacture
  • Production
  • Research and development

Steps for the Creation of Functional Area in SAP

Transaction code :-  OKBD

SAP Menu Path :– SPRO > SAP Reference IMG > Financial Accounting > Financial Accounting Global Settings > Company Code > Cost of Sales Accounting > Activate  Cost of Sales Accounting for Preparation

Step 1 :–  Enter T-Code OKBD in the commend filed


Step 2 :– In the Next screen Click  New Entries

Functional area entriesStep 3 :- Enter four digits Functional area code in the Functional Area column and update names of the Functional Areas

functional areas

Thus Functional Areas ADPR, ADSO are created in SAP.

Was this article helpful?

Related Articles

Leave A Comment?