What is Functional Area in SAP

Functional Area in SAP Hana is an organizational unit used to classify the expenses according to functions such as administration, sales, marketing, and production. Function Areas can be assigned to the master data with various objects of

  1. G/L Accounts
  2. Cost Elements
  3. Cost Centers

Functional Areas in SAP HANA – Scenarios

  1. Functional area is defined at the client level
  2. Examples of functional areas are Sales, Production, Marketing, Administration, R & D, etc.
  3. Functional Areas can be used in funds management to determine the goals and targets in particular organization expenses.

How to Define Functional Area in SAP S/4 Hana

You can create functional areas in SAP Hana by using the following configuration steps

  • Menu Path: Enterprise Structure -> Definition -> Financial Accounting -> Enterprise Structure -> Define Functional Area
  • Transaction Code: OKBD

Step 1: From SAP Easy Access screen, enter transaction code “OKBD” and enter to continue.

OKBD Functional areas transaction code

Step 2: On change view, functional areas S/4Hana screen, displays a list of defined functional areas. To define new functional areas n SAP S/4 Hana System, click on the new entries option

Functional Areas new entries in SAP Hana

Step 3: On new entries Functional Areas creation screen, update the following details

  • Functional Area: Enter the four characters alphanumeric key that identifies the functional area in SAP S/4Hana System
  • Name: Enter the text or description of the functional area

Define Functional Area in SAP HANA

After maintaining the required details for functional areas, click on the save icon and save the newly created functional areas.

Successfully we have created functional areas in the SAP S/4Hana system.