Business Area & Segment
Dear Friends,
Can any one tell me what is the basic differnce between Business Area and Segment in ECC 6
Thanks & Regards
Raj
Hi,
The Business area & segment are used for the legal reporting of your account standards,
The Business area you can define & used in all the posting transaction & Accounting standard report can be derived from the business area.
Where as the Segment is defined and attached in the profitcenter master data.So whenever the posting against profitcenter will accumulated in Segment & Accounting standard report can be derived.
Regards,
Raj
Similar Messages
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Business area, segment or profit center
I have following situation. My customer is a company which is situated all over the country. So, this 'parts' of the company are acting like companies inside a company. There is a need for producing balance sheet and P&L statement per this parts. Next topic is that this customer has a need for producing balance sheet and P&L statement per line of businesses.
My question is what to use. First idea was to create this 'parts' of company as a business areas and line of businesses to present as profit centers. My concern here is reconciliation between business areas and that now I have to include BA as an organizational element in the structure (every cost center belongs to BA, etc...). But I was reading about New GL and Segments and I came to an idea to use segment instead BA. But I can not find report, for ie. which should present AR or AP per Segment? Also, I don't know are segments sufficient for 'internal invoicing' which occurs in the company.
My question is, can this needs be fulfilled with segments + profit centers approach, or I must use BA.
Thank in advance!Hello,
whether you use BA, profit center or segment, you have to carefully assess whether you activate or not the NewGL setting that requires FI documents to match (debet=credit) by segment, for example. If not activating, you can not easily guarantee that all line items are assigned to segement. If activating, there is a lot of spefication and testing to make sure that segment information is derived or entered.
Good luck,
Auvo Ahola -
Dear All
We recently got upgraded to ECC 6. In our company we created proposal for vendor payment and send it to each BU control after taking the proposal by business area. Now we are switching on to New GL with the document splitting functionality. We have cases where we have expenses of different business area but we book vendor liability in one business area. This was ok in classical general ledger. now if we activate new general ledger and with document splitting then we should not enter business area in vendor line item. and with the help of document splitting system splitting gl for liability based on expense propotion. But if we see vendor line item it will be without business area. We wonder in this case how we prepare payment proposal by business area
RegardsHi,
I think the problem is caused by missing customizing that required in activating New GL. After activating the new GL, you also need to activate the inheritance.
So, If you create a document of Customer or Vendor invoice from Revenue or Expense item, the entities such as Business area, segment or Profit center will be projected to the customer/Vendor and tax line item in General ledger view by activating inheritance field.
The menu path is follow:
General Ledger Accounting (New)> Business Transactions>Document Splitting-->Activate Document Splitting
Tick the inheritance field.
Please try.
Thanks,
Irhasni -
Customer Open Items by segments or Business Area
Dear All
Good Morning
We would like to discuss one issue which may be other companies also facing related to New General Ledger. We book one vendor liabity which belong to two Business Area or Segment. Now we enter vendor line item only once and do not enter the business area in vendor line item. Document is posted and vendor line item is without business area. But if we see GL view document reconciliation account is splitted in two business area based on expense propotionate. which is correct but still our problem is that when we run the vendor report by business area this vendor line item will be shown without business area.
Can any one have a solution for this problem
Thanks and Best RegardsHi Ravi,
SAP will pick these invoices for payment according to vendor open items which are due according to payment terms.
When it comes to customer invoices, clearing depends on when customer pays payment to particular invoice, these customer invoices will get cleared.
I assume you are talking more closely to intercompany scenario (If it is not intercompany invoices clearing, you should not worry mostly about customer invoices clearing), where you want to clear vendor invoices and customer invoices. So you need to incorporate entry date in your functionality to pick intercompany invoices clearing.
Thanks much
Raghu Kolla -
FA segment derivation from business area substitution not working for AFABN
Hello Gurus,
I have a FA substitution of Field 'segment' is substituted by Field BSEG-GSBER.
But its not picking the Business area as Segment for the 'AFABN' postings.
Thanks for your early reply.
Thanks and regards.
GopaHi, AFABF it's depriciation?
Try do it with tcode obbh.
And if you have some problems with substitution simulate it for inspection -
Derive segment from business area
Dear Experts,
Is there an easy way to derive segment from business area when making GL postings ?
Thank you for you answer.
Best Regards,Hi,
To what I know, you'd probably have to write a user exit, as well as maintain a mapping table. The fact is that segment works almost similarly to business area and hence there is not connection between the 2.
The closest I can think of is the connection between cost centre and profit centre. Cost centre contains the business area assignment and profit centre the segment assignment.
Hope this helps.
Cheers,
Gimmo -
Usage of Segment instead of Business Area
Hi,
I wanted to use Segment as a separate field in New G/L without its derivation from profit center but as a separate field filled up by the user at the time of accounting entry so that I can use it in place of business area. Is that a possibility??
Thanks
SatishHi
The accounting principles US GAAP and IAS require companies to perform segment reporting. You can define segments in your SAP system for this purpose.
You find the appropriate IMG activity in Customizing under Enterprise Structure -> Definition -> Financial Accounting -> Define Segment. You can enter a segment in the master record of a profit center. The segment is then derived from the assigned profit center during posting.
If you want to apply different rules to derive the segment during posting, you can define your own rules for this. You find the corresponding settings in Customizing under Financial Accounting (New) -> Financial Accounting Basic Settings (New) -> Tools -> Customer Enhancements -> Business Add-Ins (BAdIs) -> Segment Derivation.
You can use the Document Splitting [Ext.] function to ensure that you are able to create financial statements for the Segment dimension. For this, you need to set up a zero balance setting for the Segment dimension. You find the document splitting settings in Customizing under General Ledger Accounting (New) -> Business Transactions -> Document Splitting.
However segment derivation is risky business. Read all help documentation before doing that.
However, as you saw, its possible.
Goodluck!
Rgds,
Zub -
Business Area, Profit Centre and Segment
Hi,
In my current business scenario shall I use Business Area, Profit Centre and Segment all together at a time or if I use Business Area and Profit Centre, Segment configuration is not required there. Kindly guide me these 3 activities and its exact purposes in the business.
With regards,
SamratHi ,
We are using ECC 6. In our business scenario profit centre is there. Under Document splitting there is a Business Area and Profit centre in config area.. Should we mention Segment field under document splitting. If we mention segment under Document Splittng inspite of Business Area, what are the problems may arrises ? Or if we mention all 3 (Business Area, Profit Centre and Segment field) in document splitting what may effect in other areas.
Kindly guide me.
With Regards,
Samrat
Edited by: Samrat Roy on Nov 2, 2008 4:42 PM -
Refresh Standard Business Area - Now have multiple flexfield segments
Hi,
Having a problem with one of the business area's not showing the correct folders in a UAT environment, so i refreshed the Business Area (right click -> refresh). We have 2 chart of accounts, 2 sets of books, 2 operating units etc, and now its added in a GL flexfield segment for each Chart of Accounts instead of the individual ones before hand. See pic below. This is a real problem, and this needs reverting back to how it was. We have 2 EUL's, one on Disco V4, and the other on Disco V10.
Image: !http://homepage.ntlworld.com/slythgoe/disco_problem.JPG!
Would appreciate any help on this as its going to cause so many problems.
Regards,
Gary Lythgoe
Edited by: gary_lythgoe on Sep 25, 2008 3:36 AM
Edited by: gary_lythgoe on Sep 25, 2008 3:36 AMHi Gary
When you did the refresh you would have been warned that Discoverer had uncovered changes between the folder in EUL and the object in the database. In order to get where you are you would have had to have accepted the changes because Discoverer will not of its own accord change your folder unless you agree to let it do so.
Just restore the folder from the last backup. That would be the easiest way of getting it back the way it was. If you don't have a backup then you'll have to manually work the folder to get it back into a clean state. I don't think you have damaged your EUL. You've just either got to restore the folder from a backup or manually put it back to rights. If you haven't been taking EUL Export backups now would be a good time to start.
The moral of the story is to pay close attention to what Discoverer reports when you ask it to do a refresh. If you see something you don't understand and need to check it out you should click the Cancel button. The EUL will be left unchanged and you can go and determine what is going on.
Best wishes
Michael -
For Statute reason, I want to implement Segment aspect but would like to know, if Segment is any different to Business Area from Reporting and Conceptual perspective.
Does Segment Reporting comes over the Profit Centre level.
Warm Regards
HPHi,
Both Segment and Business area are ment for MIS or for internal reporting purposes only and for drawing financials at different levels of the company.But the financials drawn are not accurate , hence we cann't use them for legal reporting purposes.
Business area concept is in FI part of the SAP only not for controlling part of SAP. It is mostly used for drawing financials at geographical location wise business operations of the company.
Segmental reporting is a flexy reporting apart from drawing financials at company code level. It is used mostly for drawing fianncials at Plant wise, Business lines wise etc .
Regards. -
Segment = Business Area
Hi All,
1) Client is using ECC 6.0 version and requesting for tallied P&L and B/S at Branch Level. Which is best solution, branches are mapped as Segment or Business Area.
There are 5 company codes and branches are no relation across the company codes.
2) Even client is asking Product Line Level tallied P&L and B/S.
If am using segment concept, then if I default the segment in profit center. Through this any posting happens to costcenter automatically statistical posting happens to profit center and segment. But since product lines are more, segment can't be defaulted in the profit center. If that is the case how segment posting will happen when material goods receipt, post good issue, billing and so on.
Please advise.
Regards,
Harish GDear Harish,
1) You can go ahead in mapping the branches(Divisions) as business area which is cross company code.
2) For product line, you can go for Profit Center accounting instead of Segments, wherein shared service expenses shall be allocated in between the profit center. Over and above, you have distribution and assessment at Profit Center level to take care of high end allocations. All transactions shall be taken care of in Profit Center accounting.
Mostly Segmental accounting shall be used for geographical accounting for consolidation purpose.
Trust this helps much!
Regards,
Ashok SINGH -
Hi All,
1) Client is using ECC 6.0 version and requesting for tallied P&L and B/S at Branch Level. Which is best solution, branches are mapped as Segment or Business Area.
There are 5 company codes and branches are no relation across the company codes.
2) Even client is asking Product Line Level tallied P&L and B/S.
If am using segment concept, then if I default the segment in profit center. Through this any posting happens to costcenter automatically statistical posting happens to profit center and segment. But since product lines are more, segment can't be defaulted in the profit center. If that is the case how segment posting will happen when material goods receipt, post good issue, billing and so on.
Please advise.
Regards,
Harish GHi,
Thanks for the solution.
While upload legacy data into SAP then client have to give trail balance by profit center wise i.e product line wise.
Segment is defaulted in the profit center. But segment is defined at branch level. but client can give trail balance at segment level not profit center level.
Please Advise,
Regards,
Harish -
Difference between Segment & Business Area
Hi All,
Could any one please help me in explaining what the difference between Segment & Business Area? And what does it mean by We can create financial statements at any time for the Segment dimension. For this, you need to set up a zero balance setting for the Segment characteristic can any one could please help me on this.
And also please explaining what this Document Splitting is? How is it helpful? Please give an example in real time senior. I have already gone through Help document, please dont suggest me that.
Thanks in Advance to all.
Regards,
GiridharDear Giridhar
Earlier in SAP we used to have very limited reporting hierarchies, in which business area is one like Company Code. But obviously in FI or CO either user/ partner/ management always interested in viewing the business on different entities in different forms of reports.
So, with the newGL SAP has given a provenance to users to create their own reporting entities. So, with the newGL customers can generate balance sheets by almost any dimension by defining a SEGMENT, meaning: cost center, plant, etc even you can define business area as a segment.
For this purpose was create the SEGMENT entity. So that it helps customer in segment level reporting.
We Can create financial statements means we can generate balance sheet or profit and loss statement on segment.
For lay mans terms I can tell Business Area is on example of Segment. Hope it clarifies..
In order to understand document split you should be familiar with New GL / Ledger accounting...
Regarding Document Splitting: Consider following realtime example
Invoice ( Example: Split on profit center)
Entry View
Vendor Invoice
PK Account Pr.Ctr Cost.Ctr Amount
40 Expense PC01 CC01 400
40 Expense PC02 CC02 600
31 Vendor 1000 -
Say Document number 156123
General Ledger view above document becomes as follows..
PK Account Pr.Ctr Cost.Ctr Amount
40 Expense PC01 CC01 400
40 Expense PC02 CC02 600
31 Vendor PC01 400 -
31 Vendor PC02 600 -
Suppose you got discount while paying above invoice then
Vendor Payment (entry view)
PK Account Pr.Ctr Cost.Ctr Amount
25 Payable 1000
50 Bank 970-
50 Discount 30 -
the enhanced document of the above will be as follows... discount will be splitted across profit centers ...
PK Account Pr.Ctr Cost.Ctr Amount
25 Payable 1000
50 Bank 970-
50 Discount PC01 CC01 12 -
50 Discount PC02 CC02 18-
For the above document the general ledger view will be as follows..
PK Account Pr.Ctr Cost.Ctr Amount
25 Payable PC01 400
25 Payable PC02 600
50 Bank PC01 388-
50 Bank PC02 582-
50 Discount PC01 CC01 12 -
50 Discount PC02 CC02 18-
Basically the document split will distribute the money depending on your split method you have configured in SPRO.
Don't confuse too much, it is very easy if you go step by step in SPRO -- especially Finanacial Accounting (new) configuaration.
Hope I tried to answer your query.
Regards
Siva -
Difference between operating concern, segment and business area
hi,
can any one tell me the diffrence between operating concern, segment and business area with example.
regards,
ankurHi,
Operating concern is the highest level of hierarchy in controlling area. Operating concern used to
do analysis on PCA (Profit Center Acctg) / CO-PA. This is basically used for the analysis of parameters, like measuring
internal profit of a SBU, Sales data analysis (COPA).They can even be used for Analysing balance sheet items
(Stocks,Assets,cash etc.)
Segment- financial report information by line of business and geographical area
business area- equivalent to a specific area of responsibility within your company or business segment. This can be used for both internal and external reporting
Business areas are primarily used to facilitate external segment reporting across company
codes, covering the company's main areas of operation (product lines, branches)
organizational units in FI module are ( in sequence): Client, company code, business area, company, credit cotrol area, funds
management area, dunning area, chart of accounts and controlling area.
Thanks,
Rod -
No Business Area on Tax segment of BSEG-GSBER since upgrade to 4.7
Hello everyone-
We upgraded our system in 2005 to 4.7 Since that time accounting
documents, BSEG entries that represent sales tax charged to the
customer does not have the Business Area filled in, ie. BSEG-GSBER is
blank for Tax lines. This causes a problem for us for reporting. We
need to tie the corresponding BSEG items for the tax line it pertains
to. Our reporting program has logic to tie together, but when the
pattern of the accounting documents is off, it causes discrepancies in
our reporting. Can anyone provide an alternative solution?
Thanks
MelodyLaunch the Console application in any of the following ways:
☞ Enter the first few letters of its name into a Spotlight search. Select it in the results (it should be at the top.)
☞ In the Finder, select Go ▹ Utilities from the menu bar, or press the key combination shift-command-U. The application is in the folder that opens.
☞ If you’re running Mac OS X 10.7 or later, open LaunchPad. Click Utilities, then Console in the page that opens.
Select "system.log" from the file list. Enter "backupd" (without the quotes) in the String Matching text field. Post the messages from the last backup, beginning with "Starting standard backup."
Post the log text, please, not a screenshot. If there are runs of repeated messages, post only one example of each. Do not post many repetitions of the same message.
Some personal information, such as the names of your files, may be included — edit that out, too, but don’t remove the context.
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