Hello,
Business Area vs Segment Profit Center
What is the difference between segment and profit center and business area?
Difference Between Segment profit center and Business Area
Updated May 18, 2018
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Hi NS
In ECC6.0 as per New GL concepts, we have to use Profit center accounting and NO MORE use of Business Areas, as SAP would NOT Support on any problem faced by user clients after release of ECC.6.0. Hence business area are not making active and NO More used by any clients, if used at their own risk.
In case of segment reporting(Business operations like, Chemicals,Power,Engineering,Automotive, Mining,Steel,agri business etc.) as per IAS/IFRS standards all the companys who's stocks are listed in stock exchanges, has to furnish their BS/P&L transactions which are more than 10% or more on over all business. Hence in SAP-ECC6.0 as per New GL concepts , all company's are using the segment posting and reporting. Segment are created and assigned in Profit center Master data so that all revenues/cost posted to PCA will be extract as report at segment level. We need to do config for segment / profit center level posting through document splitting method/rules, business transaction posting etc.
Hope understand the basic concepts of Segment,Profit center and business area.