oJAYo SAP training

Functional Area in SAP

Definition of Functional Area in SAP :- Functional Area is a organisational unit in accounting. It maps the functional structure especially the expenditures of an organization and describes how the funds are used.

Uses of Functional Area :-

TheFunctional area in SAP is use to create P&L A/C in Financial Accounting using cost of sales accounting and used to analyse the cost of sales accounting

Examples of Functional Area are :-

1. Administration


2. sales and distribution


3. Manufacture


4. Production


5. Research and development

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

Steps to create Functional Area in SAP

Step 1 :- Enter T-Code “OKBD” in the commend filed

Step 2 :- Click “New Entries” button in the next screen

Step 3 :- Enter four-character alphanumeric Functional area code in the Functional Area column and update names of the Functional Areas in the name column.

Now, we have created two Functional Areas ADPR, ADSO using SAP.