Definition. Business Partner Segmentation provides a range of functions that help you divide up your customer base according to the marketing activity at hand. Business Areas in SAP are used to differentiate transactions originating from different points/lines/locations in business. An alternative to business area balance sheet and PL Account is to go for profit center accounting. Examples of Functional area in SAP… Step 5:- Enter the 4 digit code in the business area field and enter the name of business areas in the description field and save the settings. This section covers a variety of topics that do not pertain to any single submodule within ERP Financials. Hello,Business Area vs Segment Profit CenterWhat is the difference between segment and profit center and business area?, Difference Between Segment profit center and Business Area , FI CO (Financial Accounting & Controlling) Forum Business Areas. It corresponds to a defined business segment or area of responsibility, to which you can assign value movements recorded in Financial Accounting. In SAP, the Business area is defined as an organizational area based within the financial accounting module. Please refer below links for understanding. Identification of business area helps in segment reporting of a company in its financial statements. CO-PA allows analyzing the profitability of segments of the market segments structured according to products, customers, orders, and summarizations of these and other characteristics as well as organizational units such as company codes or business areas. Business Area. Dear SAP-ers Now i will implementation new project and using ECC6. The aim is to provide sales, marketing, planning, and management organizations with decision-support from a market-oriented viewpoint. The decision was made to pursue the PCA approach as per SAP Note 321190, which was released in 2002, to do no further development for business areas, and to focus future development on profit centers, although FI-BA would continue to be supported. Business areas can be identified based on the products of the company or based on geographical area. Identification of business area helps in segment reporting of a company in its financial statements.