Segment splitting also to create liability

[Former Member]

Hello,

The organisation structure is as below:

One legal entity : 1 Company code

2 major division for which separate B/S is required: 2 Segment

each segment have 4 or 5 profit center where P&L is required

Now the requirement is when one segment does any payment or procures any material or does any expense, then it must be booked as receivable or payable in other segment.

This has to be done because the director for each division are different and they want to see their division profit separately.

Regards

Lavanya

[Former Member]

all the expenses/revenues, balance sheet items can be booked to respective profit center/Segment. then you can get P&L account and Balance sheet for the same.

what is the necessity to create receivable/payable in the other segment ?

[Former Member]

Hello Venkat,

Each segment have their own bank.

Segment A : Bank A

Segment B: Bank B

Say both the segment incur expense which is being paid by segment A via bank A

in standard SAP the accounting entry would be as follows where bank entry would be split based on expense

Expense (segment A)   100

Expense (Segment B)    50

            To Bank A ( Segment A)     100

            To Bank A (Segment B)        50

The client do not want Bank line item to split as this Bank A specifically belongs to Segment A

The entry that client want is

Expense (segment A)   100

Expense (Segment B)    50

           To Bank A ( Segment A)     150

Intra- Company reimbursement (Segment A) 50

            To Intra- Company reimbursement (Segment B) 50

As a month end activity Segment B reimburses the amount to segment A

Intra- Company reimbursement (Segment B)   50

            To Bank B ( Segment B)                       50

[Former Member]

Dear Lavanya,

Document Splitting should be done at three level i.e, Business Area , Profit Center and Segment

while when ever u creating any profit center by default one segment is assigned if you want to set receivable or payable in other segment. then please define document splitting rules. that may resolve your query

Thanks & Regds

Trinath