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Segment vs Business Area

Former Member
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For Statute reason, I want to implement Segment aspect but would like to know, if Segment is any different to Business Area from Reporting and Conceptual perspective.

Does Segment Reporting comes over the Profit Centre level.

Warm Regards

HP

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Answers (1)

Answers (1)

gladys_xing
Active Contributor
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Dear Harika,

Business Area represents a division of cross company codes and create it's own financial statement.

Segment represents a division of a company that can create it's own financial statlement.

New dimension 'segment' is created for reporting according to  IAS and  US GAAP(A segement      has to be reported if external revenues achive 10% of total revenue according to  IAS and  US GAAP). Segment can be maintained in the master data of a profit center.

Hope above information is helpful for you!

Best Regards,
Gladys