Formation of practical area in SAP FICO and functional area

Formation of practical area in SAP FICO / how to create functional area

Practical area in SAP

Definition of modest area in SAP: – Modest area in a company in accounting that list expenses of a company by functions.

Utilizes of functional area: – In SAP it’s useful to create P&L A/C in Financial Accounting using cost of sales accounting and used to analyses the cost of sales accounting.

Examples of Functional Area are: –

  • Administration
  • Sales and Distribution
  • Manufacture
  • Production
  • Research and Development

So here are the steps for creation of Functional area in SAP

Transaction Code: – OKBD

SAP Menu Path: – SPRO > SAP Reference IMG > Financial Accounting > Financial Accounting Global Settings > Company Code > Cost of Sales Accounting > Activate Cost of Sales Accounting for Preparation.

Step 1: – Enter T- Code OKBD in the commend field

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Step 2: – In next screen click New Entries

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Step 3: – Now enter your four digits functional area code in the functional area column and update names of the functional areas.

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Now the Functional area ADPR, ADSO are created in SAP.

For more details on sap fico online training.

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