on 05-03-2017 9:06 AM
Is it a best practice to assign plant to business area in sap
background:
business area is at client level, u can use business areas to "n" company codes and "n" controlling areas also.
plant is at company code level and acts as a valuation area.
business area is mainly used for management reporting purpose, u can post transactions of different company codes into same business area
Plant & Business area are 2 different kind of entities managed by FI & MM
Business area is different lines of operations of a Company. We can create business areas product wise, geographical divisions etc for which we would like to have internal reporting in Finance.
Plants are created in the Logistics (General) module & are assigned to the company code. The R/3 System uses a combination of plant and division to assign the relevant business area.
Arvind Leo Pereira
Best practice is to use components and customizing that serves your business needs, and this may vary between bigger and smaller companies, or even between 2 big companies with a different structure. We had no such need and hence do not use Business areas.
For what it is needed is explained in the docu: https://help.sap.com/saphelp_erp60_sp/helpdata/en/23/9fc2531bb9b44ce10000000a174cb4/content.htm
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