How to Define Segment in SAP FICO?
In this SAP tutorials, you will lean how to implement segment in SAP FICO module step by step with scenarios.
Important configurations to refer
- Define company code in SAP
- Define business area in SAP
- Define functional area in SAP
- Define financial management area in SAP
What is Segment?
Segment is a division of an organization for which you can generate financial statements for the purpose of external reporting.
- US GAAP and IAS set out different requirements regarding to segment reporting.
- US GAAP requires the complete balance sheet at segment level of reporting.
- IAS requires for segment reporting primary and secondary segmentation. It is divided into two types of segments.
The types of segments are:
Business segment: – A business segment is a sub activity of an organization that relates to the manufacture of a product or provision of service and that has risks and revenues that differ from those in other business segments.
Geographical segment: – A geographical segments is a sub activity of an organization that relates to the manufacture of a product or provision of service within a specific field of business.
- Path: – SPRO – SAP IMG – Enterprise Structure – Definition – Financial Accounting – Define segment.
- Transaction code: S_AL0_19000003
- Database Table: – FAGL_SEGM, FAGL_SEGMT.
|TCORP||TK Corporation Segment|
|TCMNT||TK Cement Segment|
|TSTEL||TK Steel Segment|
|TTEXT||TK Textiles Segment|
Step 1) Enter SAP transaction code “S_AL0_19000003” in the sap command field and enter to continue.
Step 2) On change view “segment for segments reporting”: overview screen, click on “new entries” button to create new segments in SAP as per company requirements.
Step 3) On new entries segment screen, update the following details.
- Segment: – Update key that identifies the segment in SAP
- Description: – Update the descriptive text of segment.
After updating all the details, click on save button to save the configured segments in SAP.
Now choose request number and save the details.
Successfully we have created segment in SAP.