Answer / dk rajesh

Business area refers to branches and assigned with consolidated business area ie zones.

profit center gives cost and revenue and it helps to get the details of profitibility analysis like division wise , location wise, or product wise.

Answer / srinivas

Dear friends,

The functionality of the Business area and profit center is
to create profit & loss a/c and balance sheets under the
company code level. Both have their own pros and cons.
Both are used for internal reporting only.
Both have a typical month end closing activity.
The problem with business area is when splitting the
document at the month end activity and there is a belief
that the business area concept may not support in future
version of sap.
*If i am wrong just correct me :)

Answer / subrajit321

The major difference between profit center and business are is business area is maintained in client level and within one client you can use any business area ,But Profit center is maintained in CO area level,
business are is the optional in new gl concept where as profit center is mandatory in new gl concept...

Answer / sarath kumar

Business Area : It is also using for internal reporting but we are selecting particular Business Area Wise we are seeing P&L and B/S Statements.

Profit Center: Here we can see Plant wise, Region wise and Product Group wise. But Two things are using Internal reporting Purpose only.

Answer / suraj.m

Business area: Business area is an organisational unit which corresponds to any specific Business segment. It helps in segment reporting.

Profit center: This is an internal area of a company that have the responsibility to achieving the target profits.

Major difference: Distribution and assessment is possible in Profit center but not in the Business area.

Answer / guest

Business area is defined inorder to generate internal
segment reporting.

Profit centre is a center where a separate responsibility is
assign to a center.

Answer / manoj kumar

Business area is using for classic GL for the purpose of internal Reporting in P/L AC and Balancesheet a/c
And profit Centre using for New GL for the Profitability Analysis Plant wise , division wise and group wise.

Answer / purushothaman kannan

Business Area

Based on the above we can prepare Balance sheet and profit
centre for separate product segment, geographical segment
etc. In India for certain companies it is the external
reporting.

Profit Centre

Based on the above responsble profit centre derive the
profit (only profit) (revenue minus expenses). Internal
reporting

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