Segment

A segment is a division of the company…:

• That carries out business activities that generate revenues and expenses.
• Whose operating profits are regularly inspected to make decisions about this segment (profitability and allocation of resources).
• For which financial statements can be created.

This segment division is optional, although US-GAAP and IFRS accounting principles require financial results for each segment, so in case of using these principles, segments must be created.

Financial statements based on segments can group business activities across Company Codes. For instance, you can produce the balance sheet and P&L statement for a segment of 2 companies in different countries.

You assign a segment to a profit center (Rel. N:1).