clarification

[Former Member]

Hi everybody

i have some clarification on definiation, are divisions, sales area, business area, functional area. I had gone thro material but im not clear. I hope i will get thro SAP guru's.

Thanks

C. Mohanprabu

[Former Member]

Hi

<b>Division:</b>The division is one of the organizational units in Sales & Distribution and is also required for business area account assignment for logistics transactions in Financial Accounting. The business area for the material is determined via the plant and the division defined in the material master record.

An organizational unit based on responsibility for sales or profits from saleable materials or services.

<b>Sales Area:</b>A combination of sales organization, distribution channel, and division

To set up sales areas, assign columns and distribution channels to sales organization.

The divisions and distribution channels that you have previously assigned to a sales organization are proposed for selection.

<b>Business Area:</b>

A unit in an enterprise that groups product and market combinations as homogeneously as possible for the purpose of developing unified business policy.

In a client, you can set up several business areas to which the system can assign the postings made in all company codes defined in this client. To ensure consistency in document entry, you should give business areas the same name in all company codes.

You make all other specifications for your business areas in the Financial Accounting Implementation Guide.

<b>Functional Area:</b>An organizational unit in Accounting that classifies the expenses of an organization by functions such as:

Administration

Sales and distribution

Marketing

Production

Research and development

Classification takes place to meet the needs of cost-of-sales accounting.

Typical functional areas are Sales, Production, Marketing, Administration and Research & Development.

[Former Member]

hi,

<b>Saleorg</b>: It is one which decides the products or services are to be sold to the customer

<b>Dist channel</b>: trought which the products reaches the end customer

eg:

1.dealers

2.Direct sales

3.retail

<b>divisions:</b> Procuct line or group

eg:

If company if FMCG

1.Home care products: harpick

2.personal care: Fair & lovely, tooth paste

etc..

sales area:

comnibnation of sales org + distribution channel+division

<b>BUsiness area:</b>

A business area is an organizational unit within accounting that represents a separate area of operations or responsibilities in a business organization.

genrally this is used for reporting. Now instead of business area profit center are used

<b>Functional area:</b>

An organizational unit in Accounting that classifies the expenses of an organization by functions such as:

1.Administration

2.Sales and distribution

3.Marketing

4.Production

5.Research and development

Classification takes place to meet the needs of cost-of-sales accounting.

regards,

Arun prasad

[Former Member]

HI Mohanprabu

• Sales Organization: (4 digits code) is an organizational unit responsible for sale and distribution of goods and services.

• Distribution Channel: (2 digits code) is a channel through which goods or services reach the customer.

• Division :(2 digits code) the range of goods or services that the company manufactures falls in to different divisions.

• Sales Area: combination of Sales Organization, Distribution Channel and Division.

• Sales Line: combination of Sales Organization and Distribution Channel.

• Sales Office: geographical aspect of the organization. Sales offices are assigned to sales areas.

• Plant: the factory is called the plant in SAP.

BUSINESS AREA

The functions of business area is to create balance sheets and profit and loss statement below the company code level. It functionality can be duplicated using Profit center accouting.

OX03 - Creation of new Business Area

New Business Areas can be created anytime in the Enterprise structure in the IMG. However, in the year of creation, no comparison can be done with the previous year data as the Business Area did not exist in the previous year and there are no postings in the previous year.

After create the new Business Areas, new G/L accounts should be created for :-

Sales

Cost of Sales

External Process Cost

Consumption

Material Change

Purchase

Cost of Difference for Production

Factory Output for Production Order

Next create a default account assignment to maintained the link for cost center and business area.

Transaction OKB9

Enter the Company Code and Cost Element

Cocd Cost elem. Acct assignment detail

Enter the details as per business area/valuation area

BA Cost ctr

FUNCTIONAL AREA

Configuring the Functional Areas

It organize your business for cost of sales accounting. It allow you to segregate and classify different types of costs within one expense account. For e.g. a single labour account to determine what amount of labour is spent directly on production as compare to sales or hr.

OKBD - Maintain Functional Area

GGB1 - Maintain Functional Area Subsititions

Subsititions replace and fill in field values behind the scenes without the users knowledge. It is activated at the company code level.

For e.g. Subsitiution BAA Step 001

Prerequisite

<ACCIT> FUNCTAREA

<CSKSV> $KOSAR = 'M'

Field Constant value

Profit center P1234

If condition is met field Profit center will be replaced with P1234.

GS01 - Creating a set for FUNCTAREA

Set ID - FUNCTAREA

Table - ACCIT

Field Name - HKONT

From Value To Value

10000 12000

OBBZ - Prepare Cost of Sales Accounting

CC CallPnt Validation Description Activtn Level

0001 5 BAA 1

Reward if useful to u