SAP Financial Accounting (SAP FI) Practice Exam

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Which feature allows for detailed financial reporting per segment in the new GL?

Segment reporting
General account allocation
Profitability analysis
Cost center hierarchy

The correct answer is: Segment reporting

Segment reporting is a feature in the new General Ledger (GL) of SAP that enables organizations to perform detailed financial reporting based on specific segments or divisions of their business. This capability is particularly useful for companies that operate in multiple markets or product lines, allowing them to analyze financial results relevant to each segment. With segment reporting, users can generate financial statements and reports that reflect the performance of different segments, such as geographical regions or specific business units. This detailed analysis helps management make informed decisions, allocate resources effectively, and assess the profitability and financial health of each segment. The other options, while related to financial reporting and analysis, do not specifically address the delineation of reportable segments in the same way. General account allocation pertains to distributing amounts across general ledger accounts, profitability analysis focuses on revenue and expenses from a profitability standpoint, and cost center hierarchy relates to organizing costs within an organization. Therefore, segment reporting stands out as the feature specifically designed for detailed financial reporting per segment in the new GL.