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Define FM Area in SAP

In this tutorial, you will learn step by step process to define the financial management area in SAP.

What is Financial Management Area in SAP?

SAP Financial Management Area or SAP FM Area is one of the most important organizational units which is used for budget or funds management in SAP.

How to Define FM Area in SAP?

Please follow the steps below to create an FM area in SAP:

Step 1: Execute t-code SPRO in the SAP command field 


Step 2: Next click the SAP Reference IMG button.

SAP Reference IMG

Step 3: Next follow the following  menu path:

Implementation Guide for R/3 Customizing (IMG) -> Enterprise Structure -> Definition -> Financial Accounting -> Maintain FM Area.

 IMG Path

On the next screen, you will get the list of all previously defined FM areas in your SAP System.

List of FM area

Step 4: Click the New Entries button to create a new FM area in SAP 

New Entries

Step 5: Next provide the following details to the system.

  • FM Area: Provide 4 digits unique alphanumerical key to define the new FM Area in SAP
  • FM Area Text: Provide a short description of the new Financial Management area
  • FM Area Currency: Enter the area currency for the new FM area.

FM AREA Details

Step 6: Once all the data is provided to the system please click on the Save button to save the newly created FM area in SAP.


Step 7: Next select your Customization Request number and press Enter to proceed

Customization request

A message Data was saved will appear at the bottom of your screen.

Data was saved

You have successfully created a new financial management area Stec in your SAP system.