Using Business area for External Reporting-Pros & Cons?

Dear Freinds,
We are a Retail Business Group half way through SAP IS Retail implementation. We have 8 legal entities, currently their complete Annual Financials are being made & audited separately. In SAP the structure is that there is Single Co. Code & transactions will be seggregated by Business Area (made manadatory for data entry) and Annual Accounts will be drawn up using Business Area.
This to me does not seem to be the right structure. I have joined the group recently, I will be much thankful to you all if you please help me list the Pros & Cons of using Business Area for external reporting.
Rajesh Agarwal
[email protected]
Edited by: Rajesh Agarwal on Jan 27, 2008 6:54 PM

Dan: <i>For management reporting you may not want to post eliminations between companies where the business areas are the same.</i>
If the Business wants to see the eliminations between companies, within the same business area, as part of BEx reports, what should I do? They do not want to execute consolidation functions in UCMON but just want to see how the eliminations have taken place between companies with in the same business area. 
Dan: <i>As long as the partner company and partner business area are consistently included for the intercompany transactions, the eliminations between Legal and Management will agree at the top-level of each hierarchy.</i>
Have I to introduce one more InfoObject Partner Business Area in the data basis and assign the role Sub-assignment once again?
Thanks in advance.

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