Answer / kv

Following are some of the factors which can be considered. 1. Current Chart of Accounts structure of the Organization (legacy). 2.Reporting requirement (For ex: Product based profitability or reporting) 3. Inter-company Accounting 4. Legal Requirements 5.Type of Industry for example some project based organizations use a segment to get project based accounting.

Answer / tejakarnati

Depending on your organization structure and reporting requirements it would change. You can create up to 30 segments. Most organization use between 5-10 segments. But one factor you need to consider before finalizing chart of accounts is future changes to the structure is difficult and not recommended.

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