Segmentation

[Former Member]

Hi Gurus,

1) What is Segmentation..

2) What is document split..

Thanks & Regards,

Kiran

[Former Member]

Hello

Segmentation helps to forecast. This can be in hierarchial structure. In simple words, A segment would have a product, a variant and segments.

For example if TV is a product, the geographical location would be a variant and east, west, north, south would be segments.

Document splitting allows you to display documents using a differentiated representation. In the representation, line items are split according to selected dimensions. In this way, you can draw up complete financial statements for the selected dimensions at any time.

Using the document splitting procedure, you can also create a segmented display of a (partial) balance sheet according to a set of legal requirements (for example, IAS) or according to areas of responsibility.

In addition, you can allocate at the time of posting additional costs (such as realized or valuated exchange rate differences) to the CO account assignment objects to which the costs relate. Assets can also be subsequently capitalized at the time of posting.

Rgds

Suresh

[Former Member]

Hi Kiran,

The Segment is offered as a new organizational unit, but is technically treated as any other account assignment field. Profit Centers are now integrated into new GL, segment derived from the master data of Profit center. Used for segment reporting.

Especially since service industry solutions require more and more balance sheets for segments like fund and grant (Public Sector), balance sheet by title (Media) or balance sheet by branch (Insurance). Moreover, the increasing importance of IAS puts more pressure on the quality of our segment reporting.

Excerpt from IAS 14: u2026 reporting is required for a business or geographical segment when the majority of its revenues stems from sales to external customers and segment revenues account for at least 10% of total internal and external revenues of all segments, segment income accounts for at least 10% of all segment income, or segment assets account for at least 10% of the assets of all segments. A segment can be reported separately even if it does not meet these size requirements. If the segments subject to reporting requirements account for less than 75% of total consolidated revenues or enterprise revenues, then other segments must be reported on separately, irrespective of the 10% limit, until at least this 75% is reached. u2026

Document splitting-Line items are split along selected option this ensures creation of financial statements at level below company code. The system identifies relevant GL accounts for split as per the assigned item category in configuration. Document split rules are decided based on the transaction, variant assigned to the document type in configuration.

Couple of splitting options available like ex. Active, passive zero based:

In "clearing situations", the passive split not only ensures that the account itself is balanced, but also the additional dimensions. See example in the next slides.

The logic behind the rules for active splits is explained in the following slides.

Clearing lines are always formed when values have to be reposted between account assignment objects, for example: Transfer posting from profit center A to profit center B.

The clearing lines ensure that not only the document itself is balanced internally, but also the additional dimensions (=> such as business area, segment, or profit center).

This splitting result can view in document display FB03 at General ledger view in New G/L, using this we can achieve receivables and payables by object wise (Profit center or Segment reporting).

Hope this will give clear info.

Respectfully,

Vyas