Business Area assignment

[Former Member]

Hello SDN!

I have a few related questions on Business Areas account assignment requiring your advice:

1. In the Rules for Business Area, what differentiates Item Division from a Sales Area Division? Can i say Sales Division means Header level and item div is at item level?

2. Is it true that for every different item division we can have a different business area?

3. Is it true that 1 GL account is uniquely assigned to 1 account key And 1 account key can be assigned to n GL accounts?

Best regards

Tom

Edited by: fourminutes tom on Feb 18, 2011 3:55 AM

[Shiva_Ram · Accepted solution]

1. In the Rules for Business Area, what differentiates Item Division from a Sales Area Division? Can i say Sales Division means Header level and item div is at item level?

-Yes

2. Is it true that for every different item division we can have a different business area?

You can specify the business area based on plant/item division combinations in t.code OVF0. You can add the business area determination rule in OVF2 to pull from Plant/item division combination.

3. Is it true that 1 GL account is uniquely assigned to 1 account key And 1 account key can be assigned to n GL accounts?

In t.code VKOA, there are different combinations using which G/L account can be assigned. For just account key, normally, one account key will be assigned to one G/L account and in case of accruals like rebate/frieght accruals an accrual G/L account will be also be assigned to respective account key.

Regards,

[Former Member]

Hi,

Business areas are primarily used to facilitate external segment reporting across companycodes, covering the company's main areas of operation (product lines, branches).You can assign all balance sheet items, such as fixed assets, receivables, payables, andmaterial stock, as well as the entire P&L statement directly to business areas. You can only assign banks, equity, and taxes manually to business areas indirectly. For this reason, it is not possible to create the legally-required financial statements and tax reports at business area level. Financial statements at business area level are therefore only suitable for internal reporting.

In fully featured systems (including Accounting and Logistics) the business area is usually derived automatically. Using automatic business area determination, the business area is linked to other organizational units u2013 for example:

Plant

Division

Distribution channel

Cost center

Three Rules for Business Area determination :--

1.Business area assignment by Plant/Item division

2.Business area assignment by Sales Area

3.Business area assignment by Sales organization/Distribution Channel,Item Division

Following are few important transactions, in close relation with Business Area:

OX03 Create Business Area

OMJ7 assign Business Area to Plant / Valuation Area and Division

OVF2 Org Unit: Sales Area - Business Area Determination rule

OVF0 Org Unit: Business Area Determination rule

OVF1 Sales Area - Business Area Determination rule Slsorg/DstCh

Thanks/Rajesh