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What is the difference between Business area, Profit center and Segment?

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Hi Expertise,

 

Please correct me if i am wrong here..

 

Difference between Business area, Profit center and Segment:

 

Segment is higher in organization level than Business area, profit center and segment

 

Example: Let's suppose your company selling two products Bikes and Cars in two cities like Delhi and Gurgaon

 

Segments: In this example, Cities are called Segments.

 

Business area: Company Branches are business area.

 

Profit Center: Bikes and Cars are profit centers.

 


Can we use both business area and profit center in our configuration?

 

if we consider Branches as business area and Products as Profit center or vice versa.


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