What is Functional Area in SAP
The functional Area in SAP is an organizational unit in accounting that classifies the expenses of an organization by functions such as Sales, Marketing, Production, etc.
Functional Area in SAP- Important Points
- The Functional area in SAP is used to create P&L A/C in Financial Accounting using the cost of sales accounting and used to analyze the cost of sales accounting.
- You can classify the expenses by these functions
- You can create functional areas in SAP using T-code OKBD or FM_FUNCTION
Examples of Functional Areas are:-
- Administration
- sales and distribution
- Manufacture
- Production
- Research and development
How to Create Functional Area in SAP
Transaction code:- OKBD or FM_FUNCTION.
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 SAP T-Code OKBD in the commend filed
Step 2:– In the Next screen Click New Entries
Step 3:- Enter four digits of Functional area code in the Functional Area column and update the names of the Functional Areas
Thus Functional Areas ADPR, ADSO are created in SAP.
Continue to read and learn: How to create functional areas in SAP S4 Hana system.