In this SAP tutorial, you will learn what is functional area and how to create new functional areas in SAP ECC system and S4 Hana system using the IMG menu path or transaction code.
Let’s learn what is functional area and why we need to implement functional areas in SAP:
What is Functional Area in SAP
In SAP, the functional Area is an organizational unit in financial accounting that classifies the expenses of an organization by its functions such as Sales, Marketing, Production, etc.
You need to use the functional areas when you need to report according to the cost of sales format.
Important Points about Functional Areas:
- The Functional areas are used to create P&L A/C in Financial Accounting using the cost of sales accounting and 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
Functional areas can be created using one of the following navigation methods in both ECC & S4 Hana systems.
- Transaction code:- OKBD or FM_FUNCTION.
- SAP Menu Path:– SPRO > SAP Reference IMG > Enterprise Structure > Definition > Financial Accounting > Define Functional Area.
Let’s learn:
- Creation of functional areas in the SAP ECC System
- Creation of functional areas in SAP S4 Hana system
If you are practicing using the SAP S4 Hana system, then you refer to steps S4 Hana system.
Creation of Functional Areas in ECC System
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 the Functional area code in the Functional Area column and update the names of the Functional Areas
Thus Functional Areas ADPR, ADSO are created in the SAP ECC System.
Creation of Functional Areas in S/4HANA System
Through these steps, you will learn how you can create a functional area in the SAP S4 Hana system.
Step 1: Log in to the S4 Hana system using your login credentials – user ID & password.
Step 2: Execute the transaction code ‘OKBD‘
Step 3: On the change view functional areas screen, click on the new entries icon to create a new functional area as per the requirements.
Step 4: On new entries of the functional area configuration screen, update the following details:
- Functional area
- Name of functional area.
For example: we like to create the following functional areas in the S4HANA system
- AD10 – Sales
- AD20 – Services
- AD30 – Administration
- AD40 – Costing-based costs
After maintaining all the details, click on the save button.
Now system prompts for customizing the request number, select the request number, and enter to continue to save the configured data in the SAP S4 Hana system.
Functional Areas – Tables
| Table | Name |
| TFKB | Functional Areas |
Now check the functional areas through the table level.
Step 1: Execute the transaction code SE16n
Step 2: Give the table name: TFKB and execute
Step 3: Now the functional area data displays under the table of TFBK as shown below image.
Practice Guide
You have learned what is Functional area, how to configure it, and how to view the functional area data through the table.
Now start practicing the creation of functional areas on your own using SAP ECC or S4 Hana system.