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
Satish

Hi
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

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Printing of cheque under company code instead of business area

hai sap gurus
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Dear Kishore,
I understand that your company wants to pay a vendor one cheque irrelevant of multiple business area transactions. If my understanding is correct, this can be handled by removing the tick in pay per business area
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transaction code - FBZP
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Segment v/s 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.
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Hi,
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.
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We are using Profit Center instead of Business area.
Why they are using profit center?
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The concept of business area is slowly getting extinct. SAP itself is recommending the usage of PCA to BA.
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reg

Business Area and Profit Center In Document Splitting

Hi,
We are using Business area and Profit Center characteristics for document splitting.
In one transaction, the Business area and profit centers are defaulted through the cost center.
The document is successfully split in respect of the business area, but the profit center is not filled, thereby giving error while posting.
Please suggest.

Hi,
Actually, we have all three scenarios, profit center, segment and business area..
As suggested, we have checked all field status relevant.. profit center is optional in all cases..
Now, Pls consider the scenario without business area in document splitting characteristics..
If I post an expense, profit center is picked thru cost center and segment thru profit ctr. The vendor or bank line item inherits the characteristic values from the previous line item.
Now, in addition we have business areas in doc splitting characteristics.
Business area, again is populated thru cost centers, along with profit ctr and segment.
The business area gets correctly populated in the vendor line item.. but the profit center doesnt.
Please let us know the reason..
Edited by: Swapvik on Mar 23, 2009 4:07 PM

Business Area vs Profit Center comparison document

Friends,
I have 8 company codes, 6 comapny codes are running with Business area ....
Now business wants bring those 2 company codes into Business area using.. is there any imapct for running company codes to use Business area ??
I would like to suggest Profit center accounting instead of Business area.... if you have any presentation or documentation on Business area vs Profit center please share me .....
Thanks alot for your help..
what might be necessary in each of the active company codes, to turn on business areas again, since they used to be active and what process, configuration changes necessary for each (BA and PC)
FICO

Hi,
It is recommended to enable BA to a running company only at the end of the year. The main impacts are in the Fixed Assets and Cost Centers. I have performed this task in the middle of the year and had to upload this key on all Assets, and I had used a report to assign to all cost centers. It may be necessary to create validation rules for the financial Accouting.
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FI: Business Area and profit center Issues

Hi Sap Gurus
Could you please help me with the following error
We have business areas defined as 1001 so on to 1006 and we have defaulted the profit center and business areas in the cost center master data and when I am booking expenses pertaining to two different business areas cost center for ex:-
001 31 1001 0000200055 A & A Holdings             14.000,00-
002 40 1001 0076003000 PlacemtRecruit Chrg        10.000,00
003 40 1002 0076003000 PlacemtRecruit Chrg         4.000,00
The system is throwing up the following error
Balancing field "Profit Center" in line item 001 not filled
Message no. GLT2201
Diagnosis
The field Profit Center marked as balancing is not filled with any value in line item 001, even after document splitting.
System Response
The document cannot be posted.
Procedure
First check your entries.
Additional causes could be:
u2022     No value can be derived for this field from the current document data.
u2022     You have entered a document type that is not designed for this business purpose.
Can someone provide a solution please as this is go live critical for us now
Thanks in advance
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Hi,
Actually, we have all three scenarios, profit center, segment and business area..
As suggested, we have checked all field status relevant.. profit center is optional in all cases..
Now, Pls consider the scenario without business area in document splitting characteristics..
If I post an expense, profit center is picked thru cost center and segment thru profit ctr. The vendor or bank line item inherits the characteristic values from the previous line item.
Now, in addition we have business areas in doc splitting characteristics.
Business area, again is populated thru cost centers, along with profit ctr and segment.
The business area gets correctly populated in the vendor line item.. but the profit center doesnt.
Please let us know the reason..
Edited by: Swapvik on Mar 23, 2009 4:07 PM

Any problem if we use Business area concept other than Profit Centr

Hi,
what are the problems and difficulties if we use Business area concept other than Profit Center.
Kindly give me brief deatils,,,will assign points
thanks
Sap Guru
kischowdary*gmail.com

Hi:
Business area will not be supported by SAP in the future
The problem of splitting of account balance is more pertinent in case of tax accounts.
In month end procedures, there are big problem in reconciliation.
Not Efficient in Reporting.
SAP Recommends Profit Center Accounting instead of Business area
Please let me know if you need more information.
Assign points if useful.
Regards
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Dear All
We have to define Plant Level Financial Statements. We intend to use the Business Area for generating Plant Level Financial Statements. What are the disadvantages of using Business Area for generating plant wise Financial Statements
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Samir Bhansali

Hi,
Business Area functionality has its own advantages as against PCA. Yet, it has reconciliation problems because business areas are not linked to company codes in standard configuration. In double entry book keeping, there are chances, the debit of a single transaction goes to one business area and credit of the same transaction goes to another business area. This means your double entry is not complete in both Business Areas to reconcile with Company Code Financial Reports.
If you donu2019t have an effective PCA reporting, then Business Area is the tool. But many new projects implement PCA instead of Business Area configuration. But ultimately, this is a business process decision.
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We have activated Business Area in our comapny. We have a requirement of valuating special stocks (project & Sales order) with a business area assigned to project or sales order item instead of business area determined on plant and division combination. Can you please help us on this?u201D

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http://help.sap.com/printdocu/core/Print46c/en/data/pdf/FIBUSI/FIBUSI.pdf
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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.
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Auvo Ahola

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 AM

Hi 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

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 G

Dear 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

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.
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Thanks and Best Regards

Hi 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.
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Usage of Segment instead of Business Area

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