Business Area and Plant

[Former Member]

Hi All,

1 What is the difference between Configuration and customizing?

2.What is the difference between plant buisness area? While implementing the project can we consider busniess area and plant as one and the same?

3. Can two different company codes in two different country have same operational chart of accounts?do we ned to creat two different gl accounts with for two company codes with different currency.. how does it work?

Regards,

Soumya

[Former Member · Accepted solution]

Hi,

Plant and Business Area are not the same.

Business Areas are configured in FI module as per the Product lines or geographical operations basis.

Where as The plants created in the logistics (General) module are assigned to the company code. That means all transactions taking place in the plants are posted to the attached company code in SAP FI.

Chart of Accounts

For each company code in SAP, you have to specify one chart of accounts for the general ledger. This chart of accounts is assigned to the company code. A chart of accounts can be used by multiple company codes. This means that the general ledgers of these company codes have identical GL structure.

Configuration Vs. Customization

To customise or adapt the system to your business requirements, which is the process of mapping SAP to your business process. It involves code changes to create functionality that is not available through configuration.

The process of tailoring SAP software by selecting specific functionality from a list of those supported by the software, very much like setting defaults (e.g., Word, Access)(changing switches or setting default). It is what you do to have the system be able to execute your business processes the way you want to be (configures the system to meet the needs of your business by using the existing data).

I have pasted the standard answers here for your information.

Hope this will suffice.

Regards,

[Former Member]

Hi,

1 What is the difference between Configuration and customizing?

Configuration - In the given standard SAP R/3 environment you make settings suitable for your business or according to the business blueprint.

Customizing - If something is not available in standard SAP we achieve that with ABAP code then that is customizing. Cutomizing something existing to our needs.

2.What is the difference between plant buisness area? While implementing the project can we consider busniess area and plant as one and the same?

Plant is something where operations take place, where action takes place. Business area can be anything if a business is spread across India, all the four regions can be business areas, or you divide India into 8 business areas.

3. Can two different company codes in two different country have same operational chart of accounts?do we ned to creat two different gl accounts with for two company codes with different currency.. how does it work?

If the currencies are different for two company codes in two different countries we cannot use same operational chart of accounts. Yeah we need to created different chart of accounts.

Thanks

Giridhar

[Former Member]

HI,

1: customizing: making entries in the customizing IMG (or in a customizing porject based on the IMG-structure.

configuration: not real "SAP-speech", its sometimes used like "configure credit risk management in SAP ECC 60" which means

"make all customizing steps needed and all other (initial) steps to use the credit risk functionality in a way that meets your

customer requirements.

2: plant is a logistic organizational unit, business area is an accounint organizational unit. A plant is always assigned to ONE

company code, a business area can be used also across company codes.

You can limit business area usage to one company code by creation of a validation rule (ob28).

3: Yes, more company codes can use the same chart of accounts (and its a must if this company codes are assigned to the

same controlling area).

if your company codes use different local currencies (company code: global data) there is NO need to create different

account numbers. For each comp.code you can define 3 local currencies.

Best regards, Christian

[Former Member]

Hi,

1. Cofiguration and Customization -

Configuration is to do the inital settings for a system. Customizing is changing the configuration to suit the users needs.

2. Business Ares and plant -

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 reportings in Finance

Plants are usually the manufacturing units from where logistics transactions are initiated. They are not used for FI reportings but used to fecilitate goods movements.

3. Yes two different company codes in two different countries can have same operational chart of accounts. A Gl account contains two parts - Chart of accounts related data and company code related data. Any GL account created for one company code needs to be extended to the other company code if the same is to be used for both.

Thanks and Regards,

Anit

[Former Member]

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