Segment Functionality

[Former Member]

Hello,

Can anyone provide explanation on the segment functionality in ecc 6.0. I am currently working on this and will appreciate if someone who is working or has worked on this part can provide some inputs.

thanks in advance.

[Former Member · Accepted solution]

Hello,

Segments are used to meet the reporting requirements of the international accounting principles like IAS, IFRS, US GAAP. Segment can be considered as business or geographic segment of an enterprise.

Segment is assigned to Profit center master data and they in turn are assigned to cost centers.

You have to assign your company code to ledgers and these ledgers are to be assigned with the scenario "FIN_SEGM". Only then when u post any cost or revenue to the profit centers, the same also gets posted in the segments because segments are derived from the profit centers.

Regards,

Sriram

[Former Member]

Win:

Hi again,

A segment is a group of business units having similar line of operation.

For example a company like Nike will have following segments:

1. Apparel

2. Footwear

3. Sports goods etc...

Accounting rules require companies to do a segmental reporting i.e. reporting results of business operations categorized by segments.

Vj

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[Former Member]

ok, u replied with more info, thanks.

[Former Member]

Win:

Hope this helps, if u need more info, ill reply later in the day

www.financialsexpertonline.com/archive/Volume_04_(2005)/Issue_10_(November_and_December)/V4I10A1.cfm...

Vj

Assign points if info helps

[Former Member]

I read thru it but it's just a brief description, can u explain in details whenever u get a chance. What would i need to question the business for this requirement and how can we decide if it's really required or not for the business, We are doing a new implementation and gathering requirements and making decisions as what areas would be in which phases.

thanks for your assistance,