This SAP Fico tutorial guides you on how to define the financial management area in SAP.

Financial Management Area in SAP

Financial Management Area in SAP {FM Area} is an important organizational unit used in funds management and budget management in SAP.

Menu Path: Implementation Guide for R/3 Customizing (IMG) -> Enterprise Structure -> Definition -> Financial Accounting -> Define FM Area.

Steps to create financial management area in SAP

Step 1: Enter the SPRO t-code in the SAP command field and press enter

SPRO Transaction code

Step 2: Click SAP Reference IMG.

SAP Reference IMG

Step 3: In the next screen, follow the menu path and click on define financial management area.

Maintain FM Area in SAP Path
Step 4: Click on new entries to maintain the financial management area in SAP.

create fm areas

Step 5: Now enter the following details.

  1. FM Area – Enter 4 digits alphanumerical key for Financial Management Area in SAP
  2. FM Area Text – Enter the description of the Financial Management area
  3. FM Area Currency – Enter FM area currency

Create Financial Management Area in SAP

Click on the save icon and save the maintained FM area in SAP.

Thus we have created new financial management areas {FM Areas} AD01, AD02, AD03, and AD04  in SAP.

Continue to read and learn – how to define FM area in SAP Hana.