Difference between New G/L Segment and Profitability Segment

[Former Member]

Dear friends,

Can somebody explain what is the difference between New G/L segment and Profitability segment.

Thanks, Prakash

[Former Member]

Then what is the difference between profit center and new G/L segment

[Former Member]

Profit center is again for internal reproting not for external reporting.With the help of profit center accounting we analyze different areas or units within company

New G/L segment is for external reporting purpose.And Profitability analysis is used for analysing the market segments which corresponds to profitability segment.

[Former Member]

Hi,

Segment in New G/L is puerly for external reporting purpose.A segment is a sub area of a company for which has separate financial data and which has expenses and losses.For this segment we need virtually complete balance sheet for external reporting purpose.

Profitability segment is for analysis of profit within the organisation.A Profitability segment is a combination of different characteristic for which we want to analyse sales revenue and cost.These characteristic can be any thing for example customer, product, sales organisation etc.

For example We want to analyse what is the total sales of product A for customer group B under the sales organisation XYZ. Here profitability segment = Product+customer group +sales organisation