Financial statement by business area

hi,
Has anyone encountered implementation of running balance sheet by business area and it only balances at company level but not at business area level? What are the likely causes and rectifications?
I noticed we cannot post a reclassifcation entry where we debit from BA1 and credit to BA2 as the balance sheet adjustment posting will balance it.
Thanks.

Hi,
The objective of business area is to get the financial statements for internal reporting purpose. So at the business area wise it has to balance the line items, other wise it cant be called as balance sheet.
The objective of company code is repoting to the external authorities i.e in India as per the comapanies act 1956 all the registered companies must submit the financial statements. The company code level financial statement includes the transactions posted at the business area level also.
For the internal reporting you can use either business area or profit center.
Thanks & Regards,
Shashi Kanth.

Similar Messages

Financial statement with Functional Area

Dear Experts,
We recently implemented SAP in our company.
One problem we have is that our Financial statements are just on GL, our Management wants to see the Financial statement break up by departments (Cost centers) & Projects.
I beleive that this is possible through Functional areas concept, but I don't know completely on how to configure & maintain Functional areas in order to get the Financial statements with Functional area.
Please guide me a complete configuration step.
Many Thanks.
Sunil.

Thanks Alice, but I partially disagree with your input.
What is the benefit of maintaining Functional area in the Cost center master data then.
I have seen some slides of Financial statements with Functional are break up by Cost center categories.
Please give more idea on this.
Thanks
Sunil

Financial statement version:functional area

Hi,
I created a financial statement version with functional area and run it(S_PL0_86000032 ) , most items are correct, however, the item which assigned function area always 0, this means that system can not get any data via function area. would anyone help me?
Rgds,
Wubin

Hello
If you want to define a financial statement version with functional areas, these functions are limited. You cannot use the following functions:
        Balance-Dependent Display
You cannot display functional areas dependent on the balance, that is, assign them to a different item dependent on the balance.
·        Debit/Credit Shift
You cannot define items to which you have assigned functional areas as debit/credit shift items.
·        Check for Completeness
You cannot use the check for completeness for financial statement versions with functional areas.
You also have to carry out the following additional activities:
       1.      When you enter the general data, set the Functional area permitted indicator.
You then have the option of assigning either accounts or functional areas to an item in your financial statement version.
       2.      Assign the required functional areas or functional area intervals to your P&L items
Before setting the indicator please go through this help link
http://help.sap.com/saphelp_erp2005vp/helpdata/en/b5/688b8ea30d11d39759006094b969cf/frameset.htm
regards

Upload Manual bank statement with business area

Hi Gurus,
Business area is required field. While uploading manual bank statement through ff67, how can system identify the correct business area? Is there any option in which we dont have to enter business area manually while uploading?
Please revert.
Thank You

Hi,
The copy paste does not work in FF67. Only first column gets copied and then you have to copy paste column wise. This is limitation is SAP standard transaction and is not modifiable.
LSMW will not help much as the records to be uploaded in the same statement and paage down can not be handled in LSMW.
Your ABAPer need to record the transaction in SHDB and the can create a custom program to upload the excel using that recording. This is easy for programming point of view.
Regards,
Gaurav

Financial Statement Structure(Functional Area)

Dear All,
Can anyone explain the usage of Functional Area when we Config the Financial Statement.
Regards,
Kris

Hello
Please check this out and assign points if useful
Definition
Account assignment characteristic that sorts operating expenses according to functions, for example:
Production
Administration
Sales
Research and development
Use
If you want to use cost of sales accounting, you have to use functional areas to sort your operating expenses.
You define your functional areas in Customizing under Financial Accounting ® Financial Accounting Global Settings ® Company code® Cost of Sales Accounting ® Define Functional Area.
Use
You can enter the functional area in the master data of the following objects:
G/L account
Cost element
Cost center
Orders
Order type
Internal orders
Sales order for make-to-order production and requirements class
Maintenance, service, and QM order
Production order, product cost controller, and cost object hierarchy
WBS elements
Project profile and project definition
WBS element
Networks
Network type
Network header
Network activity
During posting, the system derives the functional area from the master data of the assigned objects. For more information, see Derivation of the Functional Area.
Prerequisites
In order to be able to enter the functional area in the master data of the specified objects, the Functional area field in master data has to be ready for input. For this to be the case, cost of sales accounting for your company codes must either be active for preparation or active.
You make the settings in Customizing under Financial Accounting ® Financial Accounting Global Settings ® Company Code ® Cost of Sales Accounting ® Activate Cost of Sales Accounting for Preparation or Activate Cost of Sales Accounting.
The master data of some objects is not company code dependent, rather it is assigned to higher-level organizational units. In such cases, the functional area field is ready for input in all company codes of a client, provided that cost of sales accounting is active for preparation or active for at least one company code of the client.
In the following cases, the master data of an object is not company code-dependent:
Object
Assigned organizational unit
G/L account
Chart of accounts
Cost element
Chart of accounts
Cost center category
Client
Order type
Client
Features
You have the following options for entry of functional area in the master data of the specified objects:
Entry of functional area
You can enter the functional area provided that no postings exist for this object.
Change functional area
You can change a functional area that has already been entered as long as no postings exist.
Where postings already exist, it is no longer possible to change the functional area.
Postings that have already been made cannot be changed automatically. The functional area is derived only in the case of new postings.
Where it is absolutely necessary to change the functional area for existing postings, you can find instructions on how to perform the change in Note 115840.

Finansial statements at Business area Level

Hello Gurus,
Can any one tell me the configurations for business area wise balance sheet. I have created 2 business areas in the system. i want to compare between two business areas balance sheets in the same Fiscal year.
thanks
murali

hi
See the below link for compleat config guide for Business area.
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/FIBUSI/FIBUSI.pdf
nagesh

Business area and Sales organisation

Can any 1 of u tell me the difference btw Business area and Sales organisation

Dear Venkata Krishnan
Business areas are primarily used to facilitate external segment reporting across company codes, covering the company's main areas of operation (product lines, branches).
You can assign all balance sheet items, such as fixed assets, receivables, payables, and material stock, as well as the entire P&L statement directly to business areas. You can only assign banks, equity, and taxes manually to business areas indirectly. For this reason, it is not possible to create the legally-required financial statements and tax reports at business area level. Financial statements at business area level are therefore only suitable for internal reporting.
Sales Organisation is an organizational unit subdividing an enterprise according to the requirements of Sales. It is responsible for selling materials and services.
A sales organization can be subdivided into several distribution chains which determine the responsibility for a distribution channel.
Several divisions can be assigned to a sales organization which is responsible for the materials or services provided.
A sales area determines the distribution channel used by a sales organization to sell a divisionu2019s products.
thanks
G. Lakshmipathi

PLANT WISE FINANCIAL STATEMENT REQUIRED

Hi
Can any one tell me whether any standard report is available in SAP to get the plant wise Financial Statement ( No Business area wise ) as it is having in FBL3N ( thro dyanamic selection ) for GL balances.
Please reply immediately if possible.
Thanks and regards
G. Jana

As standard you cant get this.
A Plant would need to be linked to a Profit Center.
Do you use ERP 6.0
Perhaps you could add it as a field for document splitting. However you would then have to maintain you business splitting rules as well.
What is a plant used where you are.

Profit centre & Business Area in SD

hello
I have some doubts.
I want to know what is sifnificance of Profit centre in SD. where it is used?
And my second question is do we maintain business area only for material?Is it used only to determine G/L accounts onl?.
So please update my knowledge.
thanks
Debu

HI
The profit center valuation view shows you the cost of goods manufactured from the profit center viewpoint and valuation according to transfer price conditions
Business areas are primarily used to facilitate external segment reporting across company codes, covering the company's main areas of operation (product lines, branches).
You can assign all balance sheet items, such as fixed assets, receivables, payables, and material stock, as well as the entire P&L statement directly to business areas. You can only assign banks, equity, and taxes manually to business areas indirectly. For this reason, it is not possible to create the legally-required financial statements and tax reports at business area level. Financial statements at business area level are therefore only suitable for internal reporting.
Raghu

Inter business area transactions and trading partner business area

Hi Gurus,
We are on R3 4.7. *We have more than one business area but only one company code*.. We do pull financial statements by business area.
One of the business area A gets a service contract to do work. Some part of the work is outsourced from business area A to business Area B. Business Area A pays to business Area B for the services done by business area B.
While doing payment to the business area B, do we need to populate trading partner busiess area as business area A? Is this trading partner busiess area mandatory to be populated in this type of scenario.
Are there any things we need to be aware of when they are inter business area transactions as described in the above scenario.
We are not implementing EC-CS/any other consolidation solution.
Thanks,
Edited by: James09 on Jul 11, 2011 7:41 PM

If no consolidation system is implemeneted, then the partner business area is not mandatory. However it may be helpful for analysis as well as any future consolidations that may be necessary. Therefore it is suggested that this be captured, and in many cases will automatically be populated.

Business area Vs profit centre

hi,
can any one tell me what are the main differences between business area and profit centre.

Hi Shanker
Business areas are used in external segment reporting (over and above company codes) based on the significant areas of operation (for example, a particular region, a branch, product lines) of a business enterprise. Financial statements from business-area wise cannot be drawn up for commercial and tax law. Business area reports (e.g balance sheets and income statements for specific area) are used only for internal reporting purposes.
Profit Centres on the other hand are internal areas of a company that the responsibility for achieving target profits or productivity goals.
The objective of BA is more for reporting purpose whereas PC allows to analyse areas of reponsibility & to delegate reponsibility to decentralised units.
Thus PC are basically treated as companies within a company & ensures effective control.
I hope this helpls.
Regards
Kavitha
Edited by: Kavitha Emani on Aug 6, 2008 5:20 PM

Assign Business Area to Controling area

Hi All,
Please tell me How we can Assign Contrling Area / Cost Centre to Business Area?
Regards
Ajit Gawade.

Dear All,
when we have activated business area financial statement. the Business area is mandatory in Cost Center. Pls tell me how to deal with in the following scenario
Co Code: 1
Business Area: 4
Cost Center: 10
So in this scenario, will we create 10 costcenter or 40 cost center (10 Costcenter X 4 business area).
pls tell me which is advisable and why.
regards

Consolidated business area

Hi SAP Gurus
In SAP ECC 6.0 we are using business area concept and Generating financial statement reports business area wise. Now we want to group certain business area under some group and for that Consolidation of business area functionality is given, we have grouped them , But no standard reports are available wherein we can enter the field consolidates business area as input field.
Please let me know that is there any more activation or further configuration required for getting consolidated business area reports
What is the procedure to activate consolidate business area in ECC 6.0, so that we will be able to see consolidation business area as input field for future reports.
Pavan

Hi:
Try this report for business area wise
S_ALR_87012282 - G/L Line Items, List for Printing .Before executing the report, input business area in the selection screen.
Additionally you can use these report
S_ALR_87012332 - G/L Account Statements
Please let me know if you need more information.
Assign points if useful.
Regards
Sridhar M

Business Area into New Company code.

Hi Peers,
My Client is selling one of its Business Area and the Buyer wants to be able to use the existing SAP system. We have dicided to create a new CCD and trsansfer all the AR/AP open items of this perticulat business area in old CCD to the new ccd and business area. We also want to transfer the Asets into the new CCD by retiring them in old ccd. Please advice on the measures that needs to be taken in these processes. Also, the fisical year for the New ccd is going to be different from the old one, in this case what are the effects on the transfers and loads and exchanges rates and etc..
Please advice. My e if needed: aravind_s2k at ya***com

Hello,
I want to discuss with you about Business area so let is go:
Business areas are primarily used to facilitate external segment reporting across company codes
So from this sentences it is mean that you can assign more than one company code to one business area and there is another thing, that Business is defined on the Client Level not on the Company Code level.
There is another useful task from Business are that you can create Financial statement on the Business area level BUT
Financial statements at business area level are therefore only suitable for internal reporting
To be able to create financial statements, the data has to be updated in the general ledger transaction figures
I hope that it will help,
Regards
Hussein

Is business area and industry sector are same.

Hi All,
   is company code is related to industry sector in any way???
is industry sector related thro business area then, or is business area and industry sector are one and the same.
Thanks
Sathsih

Dear Satish,
Business Area - Organizational unit of external accounting that corresponds to a specific business segment or area of responsibility in a company. Movements in value entered in Financial Accounting are assigned to business areas.
Financial statements can be created for business areas for internal purposes.
The definition of the business area organizational unit is optional.
Business areas are used in external segment reporting (over and above company codes), based on the significant areas of operation of a company (for example, product lines, branches).
To define business areas, choose the following in Customizing for the Enterprise Structure: Definition -> Financial Accounting -> Define Business Area.
If you have defined business areas, the transaction figures for the G/L accounts are managed separately for internal evaluation purposes. You can therefore create internal financial statements for business areas.
If you want to create financial statements for business areas, you must make sure that the Business area field is ready for input in all the line items. To do this, proceed as follows in Customizing for Financial Accounting: Financial Accounting Global Settings -> Business Area -> Enable Business Area Balance Sheet.
To post items in a business area, enter the business area when you enter the business transaction. However, the business area can also be derived from other account assignments, such as the cost center. To enable the system to do this, you must define the business area in the cost center master record.
If you enter a cross-company code document, you can post to different business areas across all company codes in one document. As a result, any number of combinations of company code and business area are possible.
Industry Sector - When you create a material master record, you are required to classify the material according to industry sector and material type.
The standard system contains the following industry sectors. The ID used to identify the industry sector internally appears in parentheses.
·        Plant engineering and construction (A)
·        Chemical industry (C)
·        Mechanical engineering (M)
·        Pharmaceuticals (P)
The other sectors are for retail.
Regards,
Naveen.

Financial statement by business area

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