What is Functional area concept in SAP, What way it is useful.

Any body explain the concept of Functional area, in which way it is useful .  give 2/3 examples how to use.

Hi,
Functional areas are used to analyse Cost of Sales Accounting. By this you can analyse your organization's expenses by your funtional area like Finance, Marketing, Production, HR and so. If you want to default functional areas in to document then GL master has field of functional area where you can map it.
Steps for Cost of Sales Accounting.
1. Crete functional areas - OKBD
2. Create substitution for cost of sales accounting with call up point 5 - GGB1
3. Activate cost of sales accounting under SPRO>Financial Accounting>Financial Accounting Global Settings>Company Code>Cost of Sales Accounting>Activate Cost of Sales Accounting for Preparation
Regards,
Chintan Joshi.

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    Check details using F1 key - this is what you should get -
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    See the documentation on Filling the Functional Area Field.
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    For more information on the functional area, see the implementation Guide for Funds Management Government in the section Activate Account Assignment Elements.

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