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Segment = Business Area

Hi All,

1) Client is using ECC 6.0 version and requesting for tallied P&L and B/S at Branch Level. Which is best solution, branches are mapped as Segment or Business Area.

There are 5 company codes and branches are no relation across the company codes.

2) Even client is asking Product Line Level tallied P&L and B/S.

If am using segment concept, then if I default the segment in profit center. Through this any posting happens to costcenter automatically statistical posting happens to profit center and segment. But since product lines are more, segment can't be defaulted in the profit center. If that is the case how segment posting will happen when material goods receipt, post good issue, billing and so on.

Please advise.

Regards,

Harish G

replied

Dear Harish, 1) You can go ahead in mapping the branches(Divisions) as business area which is cross company code. 2) For product line, you can go for Profit Center accounting instead of Segments, wherein shared service expenses shall be allocated in between the profit center. Over and above, you have distribution and assessment at Profit Center level to take care of high end allocations. All transactions shall be taken care of in Profit Center accounting. Mostly Segmental accounting shall be used for geographical accounting for consolidation purpose. Trust this helps much! Regards, Ashok SINGH

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