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
Step 2 :– In the Next screen Click New Entries
Step 3 :- Enter four digits Functional area code in the Functional Area column and update names of the Functional Areas.
Thus Functional Areas ADPR, ADSO are created in SAP.
