DEFINE SEGMENT

Define segment

The segment is defined as sub area of an organization with activities that are general expenses and revenues with an operating result (profit or loss).

This is regularly used by management for profit assessment and resource allocation purposes. we can draw financial statement that is balance sheet and profit and loss account segment wise. Segments can be entered in profit center master records.

It is defined in 2 different types: 

• Business segment 
• Geographical segment

PATH:

STEP 1

Enter SPRO in the command field

STEP 2

Select SAP Reference IMG

                  

STEP 3

Enterprise structure >> definition >> financial accounting >> define segment

STEP 4

Select New entries button

Enter segments and description details:

Select the save button and save in TR.

Question related to:

1. What is segment?

Segment is subarea of an organization.

2. What is the need of segment in an organization?

In an organization segment manage the profit and loss.

3. How many types of segments are there in SAP?

There are basically two types of segments are available in SAP

1) Business segment 

2) Geographical segment

4. What is the use of segment?

Segment is used for reporting purpose of an organization such profit & loss account and balance sheet for external reporting.

5. How segment is different from business area?

• Segment is for creating its own reports such as profit & loss account and balance sheet for an organization and it is easy to maintain so that it helps the user for segment level reporting whereas business area can maintain a specific business segment only and used for external and internal reporting.
• Segment is used for profit center where as business area is used for cost center, plant, assets etc.
• segment is used for reporting to one profit center only whereas business area has many profit centers.

6. What is the difference between segment and profit center?

• Segment is used for reporting to the profit center whereas profit center is used for preparing financial statement for an organization. 
• Segment is created under company code level whereas profit center can be created under controlling area.