which option is best in between Business Area or Profit
center for generating balance sheet & P/L a/c while using
ECC 6.
Answers were Sorted based on User's Feedback
Answer / radhika maral
The Balance sheet should be as per the Profit Center wise
as Business area is defined at the Client Level & Profit
Center at the Company code level
Hence for getting a proper & exact idea of P/L & Balance
Sheet we generally prefer Profit center
Is This Answer Correct ? | 7 Yes | 1 No |
Answer / pavan
Profit center because we have an option of reposting cost
and dummy profit center in profit center accounting
Is This Answer Correct ? | 3 Yes | 2 No |
Answer / mk
I think that the balance sheet should be at the company code
level. I see no use of a balance sheet created for a proft
center or even a business area. Balance sheet has items
like equity capital, cash, retained earnings which belong to
the legal entity and not broken up by a business area or a
profit center.
As for P&L statement, they can be created by either Business
area or the Profit Center and depending upon your use of
business area or profit center the usability of either
option can be argued. However, the purpose of profit
centers "is" to determine the profitabilty of a business
operation, a department or even a person. So, a profit
center specific P&L will shed light on the profitability (or
not) of that profit center. That could be useful in taking
decisions such as continuing or discontinuing with that
profit center or trim costs or reorganize resources.
Is This Answer Correct ? | 2 Yes | 1 No |
Answer / bnvdiwakar
if company has taken all type transation like purchages ,
sales , tax, prodution , rents , expences, salaries and
wages, marketing , packing, distebution and more .this type
transations is taken to the trading and profit&loss account
after that when the closeing year profit or loss show in
this statement,after that this statement is converted to the
balance sheet . This called a profit center account.
Is This Answer Correct ? | 0 Yes | 0 No |
Answer / vijay
This is dependent upon the client requirement and how client
want to view his internal reports business area wise or
profit center wise on that bases the consultant should
configure.
pls rectify me if i m wrong
Is This Answer Correct ? | 0 Yes | 0 No |
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