The Important organizational elements in SAP FI are
- Company Code
- Business Area
- Chart of Account
- Functional Area
Company code is the Smallest Organization unit for which independent financial statements can be carried out. Balance sheets and profit & loss statements can be created at the company code level as required by law. Business transactions are processed at each company code level.
A business area is a separate area of operations or responsibilities of organizational units within a company code and used for internal and external reporting. Different divisions of each business within a legal entity are created as Business areas for reporting of each operational area.
The chart of accounts ( COA ) is a list of GL accounts master records that are used by the organization. A chart of accounts must be assigned to each company code
A functional area is an organizational unit in accounting that classifies the expenses of an organization by functions. The functional area is used to create P&L A/C in Financial Accounting using the cost of sales accounting. e.g. of functional areas are
- Administration
- sales and distribution
- Manufacture
- Production
- Research and development.