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Using Business Area or not

We would like full balance sheet reporting by business unit, lower than our legal company code structure. Profit...

center accounting can provide reporting on working capital accounts but not cash, prepaids, etc. Should we consider defining our company codes lower than legal entity and then consolidate or is it safe to use Business Area? We've heard that Business Area doesn't work well through the manufacturing process. We are on 4.6b with discrete manufacturing orders.


The answer to the question is dependant upon the level of detail required. If your Product Lines require P&L visibility, then go down lower than the legal entity. During our design phase we identified that Business Area was not sufficient for our reporting needs. We are now going back into the material and recoding material to accurately track costs by Product Line. If your infrastructure can support the additional burden for reporting, create a hierarchy that provides as much details as possible. Then use Cost Center Groups to get consolidated details.


This was last published in June 2001

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