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    Functional Area

    Define Functional Area in SAP

    Functional Area in SAP is a organizational unit in accounting that classifies the expenses of an organization by functions such as Sales, Marketing, Production, etc.

    Functional Area in SAP- Important Points
    1. The Functional area in SAP is use to create P&L A/C in Financial Accounting using cost of sales accounting and used to analyze the cost of sales accounting.
    2. You can classify the expenses by this functions

    You can create functional areas in SAP using T-code OKBD or FM_FUNCTION

    Examples of Functional Area are :-
    • Administration
    • sales and distribution
    • Manufacture
    • Production
    • Research and development
    Steps for the Creation of Functional Area in SAP
    Transaction code :-

    OKBD or FM_FUNCTION.

    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 SAP T-Code OKBD in the commend filed

    Step 2 :–

    In the Next screen Click New Entries

    Step 3 :-

    Enter four digits Functional area code in the Functional Area column and update names of the Functional Areas

    Thus Functional Areas ADPR, ADSO are created in SAP.


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