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This SAP article will guide you all about “How to Define Regions in SAP” step by step with screenshots. You enter the required regions in this step. The region is used for the following functions:

1. Part of address


2. Tax reporting in FI


3. Pricing in SD (only for tax)

Note :- The region is not used for evaluations carried out according to regional aspects of the business (e.g. market segments, sales areas).

Steps to Define Regions in SAP

Step 1 :- Follow the below menu path

• SAP IMG Path: – SPRO > SAP Customizing Implementation Guide (IMG) > SAP NetWeaver > General settings > Set Countries > Insert Regions

Step 2 :- Click on “Insert Regions” and on the change view “Regions”: Overview screen select “New entries”

Step 3 :- On the New entries: Overview of added entries, update the following fields

1. Update two digits country key


2. Enter two digits region key


3. Update the description of the region

Step 4 :- After updating the information click on save button to save the data.

Now, we have successfully done with “How to Define Regions in SAP”.