What is the recommended approach to create an internal balance sheet according to further criteria?

The recommended approach to create an internal balance sheet according to further criteria involves establishing business areas and utilizing assignment rules for determining these business areas. This method allows for more precise reporting and internal analysis by categorizing financial data based on predefined areas of the business.

When using assignment rules, organizations can specify conditions that dictate how transactions are allocated to the relevant business areas. This facilitates better financial tracking and ensures that the internal balance sheet reflects accurate data according to specific criteria that matter to the organization.

Creating business areas itself is important, but without assignment rules, the allocation of transactions would be arbitrary or inconsistent, which would not be productive for internal reporting.

In contrast, other options such as direct assignments to company codes or merely creating an additional company code would not provide the contextual breakdown of financial data necessary for an internal balance sheet. These alternatives may lead to a more rigid structure that lacks the flexibility and detailed insight that assignment rules can offer.