How to create Financial Management area in SAP

In this tutorial you will learn how to maintain financial management area in SAP Fico step by step. We are going to implement the following FM areas in SAP

FM AreaFM area textFM area Currency

Important configurations to refer

Define company code in SAP

Define business areas in SAP

Define functional area in SAP

What is FM areas in SAP?

Financial management area in SAP is an organisational unit that organises the company from aspect of cash management and funds management.

You can assign one or more company codes to a FM area in SAP. The financial management area is taken from the company when assign company code to an FM area in SAP.

Implementation process

You can maintain FM area in SAP by using navigation method or transaction code.

Step 1) Enter transaction code “OF01” in the SAP command field and enter to continue.

SAP Transaction code OF01

Step 2) On change view “Create FM Areas” Overview screen, click on entries button to create new financial management area in SAP as per the organizational requirements.


Step 3) On new entries:Overview of added entries screen, update the following details.

  • FM Area: – Give the four alphanumeric key that identifies the Financial Management Area in SAP.
  • FM Area Text: – Update the descriptive text of Fm area.
  • FM area currency: – Update the currency key under which currency financial management areas are to be maintained.
Maintain Financial Management Area in SAP

After updating all the details, click on save button and save the configured details.

Step 4) Now you are prompted for customise request number to save the FM area in SAP, choose request number and save the details.

Successfully we have maintained Financial management area in SAP.