Business Segment vs Business area in S/4 Hana

[patricia_fino]

Hello,

is the business are replaced by business segment in S/4 Hana? Or can we still use both?

Thanks and Best Regards,

Patricia

[Shakeel_Ahmed]

HI Fino,

Considering that Business Segment = Segment (I don't think, business segment field is there in SAP).

There was a message from SAP long back (5-6 years back) that Business are functionality will be removed and not enhanced any further in future versions. But then I also heard couple of years later that Business area will not be removed and it gonna be there as it is.

There are so many organizations where Profit center and business area is used in parallel and SAP just can't ignore the importance of Business area.

Comparison: You can compare Business area with profit center; but you can't compare Business Area with Segment. Segment logic of derivation in transactions is not as enhanced and easy as it is for Business area and profit centers.

Moreover, segment is used for segment reporting as per IFRS which is completely different from Business area purpose.

Business area is there in SAP S/4 HANA and it is used almost in all big implementation even today.

Regards

Shakeel