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Business Areas
A company code represents an independent accounting unit
The balance sheet and the profit and loss statement required by law are created at this level

You can use business areas to report financial information across several company codes with regard to significant fields of activity (for example, division-related)

Business area balance sheets and profit and loss statements can only be used for internal reporting

G/L accounts can be posted by business area

The business area has no fixed assignment in Customizing; it is determined per order item according to certain rules

Determination of Business Areas
You can specify rules you want to use for determining the business area for each sales area
The following rules are available (these rules cannot be extended)
Business area assignment by plant and item division
Business area assignment by sales area
Business area assignment by sales organization, distribution channel, and item division

This can lead to different business areas being determined for several items within the same order
The system will automatically create several accounts receivable posting lines for the relevant business areas when this occurs