Define Segment:
Division
of a company for which you can create financial statements for external
reporting.
You
can enter a segment in the master record of a profit center. The characteristic
Segment is only released in combination with the characteristic Profit Center. If no segment is specified
manually during posting (only possible for transactions in Financial
Accounting), the segment is determined from the master record of the profit
center. This profit center can also be assigned manually or derived. If you
want to apply different rules to derive the segment during posting, you can
define your own rules for this.
IAS requires for segment reporting primary and secondary
segmentation, which have different reporting depth. A distinction is made
between the following types of segment:
Business segment
A
business segment is a distinguishable subactivity of a company that relates to
the manufacture of a product or the provision of a service and that has risks
and revenues that differ from those in other business segments.
Geographical
segment
A
geographical segment is a distinguishable subactivity of a company that relates
to the manufacture of a product or the provision of a service within a specific
field of business. The risks and revenues of a geographical segment differ from
the subactivities in other fields of business.
You can choose which segment type you want to have as
the primary or the secondary segmentation. You can use the Segment
dimension for the primary segmentation. You can represent the secondary segmentation
in your system. You can do this by including a user-defined field Region
in your general ledger accounting