Combinations for Bussniess area

[Former Member]

Hi

Can you tell me the combinations that we can have for a Buss area in SD.

Thanks

Partha

[Former Member · Accepted solution]

Hi,

We can have 2 combinations

1. Plant + Div ( most preferred, if many plants ans div exits in a company)

2. Plant + sales area

Chandru

[Former Member]

Apart from Chandru's answer following are the benefits\uses of Business Area

Business areas are primarily used to facilitate external segment reporting across company codes, covering the company's main areas of operation (product lines, branches).

You can assign all balance sheet items, such as fixed assets, receivables, payables, and material 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.

If helps reward

[Former Member]

Hi,

Whats the exact benefit of having this BA

[Former Member]

Hi,

When an Invoice is made from Plant 1, there might be many divisions under it, so to retrieve accounts in a micro level, you need to have a accounting element whcih can gives us the value in a certain combination.

So a Buss area si used for this purpose.

Chandru