Integration SAP ERP Financials

Cost Elements:

  Cost elements describe the origin of costs ,and are defined as either primary or secondary .

  Cost and revenue accounts in FI have an identical twin in the CO component in the form of revenue and cost elements .
 
   Use secondary cost elements to record the internal flow of values for activities such as assessments in Cost Center Accounting and
   settlements in internal orders.

   Primary cost elements are the CO version of P&L accounts . Whenever a posting is made to a general ledger P&L account with
   an equivalent cost element, the posting is mirrored in that cost element and ,therefore, in CO. This keeps the general ledger

Profit Center :

   How a certain profit center was determined at the time of postings . As you've already seen with cost center creation, you assign a
profit center in its master data , which means that when any entry is made in the cost center, profit center information is auotmatically update.

 

Segment --> Segment reporting:

 You can define a segment as a division within a company, for which you can create financial statements to meet external reporting
requirements  The U.S. GAAP and IFRS accounting principles require companies to prepare and report financial statements on the
basis of segments . As part of SAP General Ledger , you can now define segments in your system for this purpose.