Hi,
Not an expert in this but.
What does Segmentation in sap means.
Division of a company for which you can create financial statements for external reporting
In SAP, the one guaranteed way of creating full financial statements, is to set up the segment as a company code. However, this would mean that company codes would need to be created for each business segment, some which themselves will span several company codes. This could lead to a rather cumbersome and complex set up of the company code structure.
Two existing SAP objects could go some way to facilitating the production of financial statements. They are as follows:
(1) Business Areas: This is the division of a company for which you can create financial statements for external reporting. By definition, this seems to satisfy the requirement specified by the SEC and IASB. However, for the past decade, there has been talk in SAP circles, that Business Areas will cease to be supported by SAP in the future (at what point in the future this will happen, is left to be seen);
(2) Profit centers: This is an organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control. Profit Centers have transitioned through the years from being part of the Controlling module (for Profit and Loss Management reporting) to being part of the Enterprise Controlling module (for P&L as well as certain Balance sheet items) to being part of the general ledger (for full financial statement reporting using document splitting).
http://ovigele.com/the-purpose-of-segments-in-sap-general-ledger/
Hope it clears more.
Thanks
Rishi abrol