HI Krishna Priya,
Profitability segment
An object within Profitability Analysis to which costs and revenues are assigned.
A profitability segment corresponds to a market segment. You can calculate the profitability of a profitability segment by comparing its sales revenues against its costs.
A profitability segment in an operating concern is defined by a combination of characteristic values. Characteristics can be concepts already available in the SAP System (customer, product, sales organization, and so on), or you can define your own concepts (such as "order size class").
Example
Profitability segment 1: Product "Prod-1132"/ Customer "100267"
Profitability segment 2: Industry "Chemicals"/ Country "USA"/ Product group "Laboratory instruments"
Segment
Segment is an organizational unit in external accounting. It corresponds to a separate operational or responsibility area in the organization and value flows recorded in Financial Accounting can be assigned to it.
Use
Segment are used primarily in segmented external reports dealing with significant areas of the organization, such as product lines and branch offices, that cross company code boundaries. Segments can be defined as an isolable operational field in the organization
Regards,
Kiran
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