This blog post focuses on the process of business area account assignment. You can define business areas by division, for example, to create “internal balance sheets” or for internal reporting purposes. This is carried out in Financial Accounting. The business areas that are determined can be viewed in the accounting document. Determination is carried out per order item in Sales and Distribution, according to specific rules.
Example of Account Assignment:
In organization, for the purposes of your company-specific reporting, business areas are defined, for example, by individual sales divisions.
A company code represents an independent accounting unit. The balance sheet and the profit and loss statement required by law are created at this level.
You can use business areas to report financial information across several company codes with regard to significant fields of activity (for example, division-related). Business area balance sheets and profit and loss statements can only be used for internal reporting.
G/L accounts can be posted by business area.
The business area has no fixed assignment in Customizing; it is determined per order item according to certain rules.
You can specify the rules you want to use for determining the business area for each sales area.
Three rules to determine business area:
• Rule 1: Business area assignment by plant and item division
• Rule 2: Business area assignment by sales area
• Rule 3: Business area assignment by sales organization, distribution channel, and item division
This can lead to different business areas being determined for several items within the same order. The system will automatically create several accounts receivable posting lines for the relevant business areas when this occurs.
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