Business Area versus Company Code

[former_member233411]

Hi,

I need some help please. If a company decides to split the business and the requirement is to have Financial Statements, i.e Balance Sheet and Income Statement for each one, what is recommended?

The business is on SAP Component EHP6 FOR SAP ERP 6.0, Classic GL for 25+ years.

1. New business area's with a new cost centre hierarchy assigned to the existing company code?

2. Or a new company code? What are the advantages of a new company code versus new business area's?

[Mainak0412 · Accepted solution]

As per my opinion, new co.code will be a better option.

In SAP, Business area balance sheets are used for internal reporting purpose. Items such as AR, AP, Stock, Inventories, Fixed assets can be assigned directly to the business area, whereas items like bank, taxes can't be assigned directly to the business area and you have to do the same by manual intervention. So you have to decide upon the same.

In the co.code global parameters, you have to select the checkbox - " Business area Financial statements" to get the reports as per business.

Hope it helps.