Functional Areas within the FI Enterprise structure are used to organize your business for cost of sales (COS) accounting. Functional areas allow you to segregate and classify different types of costs within one expense account. This makes it possible for example, to use a single labor account to determine what amount of labor is spent directly on production as opposed to sales or administration. It is possible to report on functional areas from both FI and Profit Center Accounting.
Enterprise Structure >> Maintain Structure >> Definition >> Financial Accounting >> Maintain Functional Areas
Transaction code: OKBD
Saks Apparel has determined that it requires five functional areas to classify cost of sales accounting. The functional areas are Administration, Sales, Production, Research & Development and Marketing. By using these functional areas, Saks Apparel will be able to report on an individual expense account using these five categories. Our next piece of configuration will be able to enable SAP to populate our postings with functional areas.