Define personnel Area & Personnel Sub area.

Personnel Area : Personnel Area is the Sub division of Company Code and can represent a functional or geographical Location. These plays a vital role in time and Payroll configuration. The Personnel area is Unique within the client and can be assigned to only one company code.
Personnel area is represented by a four digit alphanumeric identifiers.
It (Personnel Area) allows you to generate default values for data entry. Example: for Payroll accounting area.
It is a Selection criterion for reporting
It constitutes a unit in authorization checks.

Personnel Sub Area
The Personnel Sub Areas (PSA) represents a further subdivision of the personnel area. The Principal Organization aspects of human resources are controlled at this level. Namely the pay scale and wage type structures and the planning of work schedules. The PSA is assigned a four-character alphanumeric identifier.

The main organizational functions of PSAs:
- To specify Country grouping, Master data entry, setting up and Processing of wage types and pay scale groups in payroll period on the country grouping. The grouping must be unique within the company code.
- To set groupings for TIME Management so that work schedules, substitution, absence and leave types / quotas can be set up for individual PSAs.
- To generate a default pay scale type and area for an employee's basic pay.
- To define Public Holiday Calendar
- To define sub area specific wage types for each PSAs