Division & Business Area Account Assignmnt

[govind_gogate2]

Dear All,

We are configuring New GL Function. While maintaining Business Area Assignment, we are stuck up at following:-

1) IMG> Enterprise Structure> Assignment --> Sales & Dist --> Business Area Assignmnt

Under this node, we 'Define Rules by Sales Area" We have 3 rules to choose from.

001 - Business area determination from plant/division (T134G)

002 - Business area determination from sales area (TVTA)

003 - Business area det. from sales org/dist. channel item div.

Here we are confused which one to choose from.

Also in this regard,please see this statement........

"Business Area is determined based on Sales Organization,Distribution Channel,<b>Division</b>,Plant and <b>Item Division</b>"

We think the above options are closely related to the concept of Division & Item Division.

Pl help in this regard.

Gov

[Former Member · Accepted solution]

hi,

Business area is used by the Finance for the internal posting purpose.

If you select the rule 3, you need to assign the same to your sales area.

Prase

[Former Member]

Hi,

Business Areas in SAP are used to differentiate transactions originating from different points/lines/locations in business. Let me give some examples to elucidiate:-

A company (say, ABC) is a huge company and has a variety of businesses under it. Let us say that it typically operates in 3 different domains like machinery manufacturing, trading and assembling of machine parts.

There are 2 options here now -

1. Either create different company codes for the 3 business operations (which would be the easiest and require no creativity)

or

2.) Create each of these business lines into business areas (the better option).

The advantages of using the second option is:

1. You can use these business areas if other company codes require the same areas

2. The configuration is simpler as in case of company code, you would require to go through the entire configuration of creating Chart of Accounts, Fiscal Year variants, posting periods variants and so on. In the business area option, you just need to attach it to the company code and the rest of the details in Business area is attached by default from the company code you are using it in.

3. Using the options in controlling (EC-PCA, Enterprise Controlling, Profit Centre Accounting), you can even draw up Balance Sheets and PL statements for your business areas and hence this is used for management accounting in some companies (like HP, Dell, etc) when it wants to know the operating profits for different business areas/lines.

The above was an example when the company wanted to separate entries according to the lines it operates in... the other case could be when it wants to find out profitability during its operations in cities and differentiates these cities into Business

Areas...

Business Areas are not much relevant in FI but are much more relevant in CO.

Hope this clears.

Manoj

[Former Member]

Hi Gov,

If you asign the option 1, the system considers the assignment done with plant.

Thanks

Mohan

[Former Member]

Hello,

Rules specifies how the system determines the business area for posting in GL accounts.

For business area account determination, you have to define for each

sales area the rules according to which the SAP System should find a

business area.

If you do not specify a rule for a sales area, account determination

cannot be carried out for each business area.

<b>If using rule 001 - Business area determination from plant/division (T134G)</b>

The SAP System then finds the corresponding business area for account

assignment using plant and item division in the case of revenue

postings.

<b>002 - Business area determination from sales area (TVTA)</b>

<b>003 - Business area det. from sales org/dist. channel item div.</b>

In this IMG step, you assign business areas to sales areas for automatic

business area account determination.

The system then finds the corresponding business area for account

assignment using the sales area for:

o Revenue postings

o Value postings due to material movements

Depending on the rule, the sales area's division

is either the document header's division or the document item's

division.

Reward if helpful.

Regards,

Priyanka

[govind_gogate2]

Hi,

Thats fine. I have still some question.How differently will the assignment of option 003 will help than if I assign option 001?

Awaiting for reply,

Govind

[Former Member]

Hello,

At a time for one business area only one rule is applicable either 001, 002 or 003. As these rules helps for financial postings. I other words we can say these rules are selection parameters which helps for doing postings for a business area.

For example, if i want to do posting on the basis of plant then i will be using rule 001, if i want posting specific to item division then rule used will be 003.

Reward points if helpful.

Regards,

Priyanka