Define Functional Area

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 :-

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
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

SAP FICO

Step 2 :– In the Next screen Click  New Entries

SAP FICO, SAP

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

SAP Certifications

Thus Functional Areas ADPR, ADSO are created in SAP.

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