Principles
The Business area is used in PF1 only and it identifies the business involved in each transaction.
The codification of the Business area is:
- 1st digit : Rules - PF1 - Sector code
- the 2 middle characters : Rules - PF1 - Activity 1
- last digit is always "0", except for German companies
Transaction code in SAP
In PF1, the allocation of inventories by Activity 1 is done using the Business Area
The Business area is a 4 digit code. The reporting division (= Activity 1) is determined from the 2 middle characters (positions 2-3).
It is directly assigned to FI postings, cost centers, orders and WBS.
The business area for material stocks movements, that will derive the inventory allocation in Working Capital report, is determined with the combination of its Division and a Plant
=> DV x Plant = Business Area
Material division and Reporting division are not to be confused
Determination of the Group of Activities using the business area
In MM03, the division of the material code 31851 is AA
The combination of the Material division AA with the plant TOSA gives the Business Area 7250 (maintained in table T134G)
The corresponding Reporting division is 25.
The group of activities (=SDSOA) is determined with the table ZZR_REPO_DIV using the reporting division (=25).
