Business Area & Segment

[former_member225637]

Dear Friends,

Can any one tell me what is the basic differnce between Business Area and Segment in ECC 6

Thanks & Regards

Raj

[former_member225637]

Answered and closed

[Former Member]

Hi,

The Business area & segment are used for the legal reporting of your account standards,

The Business area you can define & used in all the posting transaction & Accounting standard report can be derived from the business area.

Where as the Segment is defined and attached in the profitcenter master data.So whenever the posting against profitcenter will accumulated in Segment & Accounting standard report can be derived.

Regards,

Raj

[former_member225637]

Dear Raj,

Thanks for your clear answer and sorry for the late reply

so from your answer

Business area is cannot be posted to profit center

where as Segment can be posted to profit center

is that the main difference

Thanks & Regards

Raj

[Former Member]

Hi,

Actually, Business area is a free org unit, whereas Segment is a dependent org unit..

Business area can be derived thru Cost center, or defaulted against cost elements or can be entered manually. It need not have a defined flow.

Segment has a defined flow from cost center to profit center to segment or from profit center to segment. It cannot be maintained manually.

Hope this clears the doubts.

[Former Member]

Hi, Both help in creating legal as well as management segmental reporting as per Accounting Standards. In some cases both shall be utilized for segmental reporting. Trust this helps much! Cheers!