What data must be linked to a cost center to derive segment accounting?

Segment Reporting and Profit Centers:For segment reporting in SAP, a profit center is used to track the financial performance of different business segments. Linking a cost center to a profit center allows for detailed financial analysis and segment reporting.

Implementation and Configuration:

Assign Profit Centers:In the master data of a cost center, assign a profit center to ensure financial transactions related to the cost center can be attributed to the correct business segment.

Segment Reporting:Utilize this setup for segment reporting in financial statements, enhancing transparency and control over segment-wise performance.

Financial Integration:

The linkage between cost centers and profit centers is crucial for deriving segment accounting information, facilitating the allocation of costs and revenues to different business segments.

References:

SAP Financials Configuration Guide

SAP Profit Center Accounting Documentation