whats the difference between business area and profit center.




Answers were Sorted based on User's Feedback



whats the difference between business area and profit center...

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.

Is This Answer Correct ?    34 Yes 0 No

whats the difference between business area and profit center...

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 :)

Is This Answer Correct ?    25 Yes 9 No

whats the difference between business area and profit center...

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.

Is This Answer Correct ?    6 Yes 2 No




whats the difference between business area and profit center...

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...

Is This Answer Correct ?    4 Yes 0 No

whats the difference between business area and profit center...

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.

Is This Answer Correct ?    2 Yes 0 No

whats the difference between business area and profit center...

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.

Is This Answer Correct ?    8 Yes 8 No

whats the difference between business area and profit center...

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

Is This Answer Correct ?    1 Yes 5 No

Post New Answer



More SAP FI CO Interview Questions

how the Electronic bank statement will update ? will they use any other interface ? can u explain clearly ?

2 Answers  


Brief about g/r I/r clearing. Can’t v avoid this a/c? Process?

4 Answers   Accenture, TCS,


Anybody please define Asset Accounting? significance and procedures.

3 Answers   Abacus,


Is Withholding tax Equal to VAT. If No what is the difference between the two.If equal why they are given a different name as such. Plz explain

3 Answers   SAT InfoTech, Nitel,


What Kind of Report we Can see in Cost based Profitability Analysis and Accounting based Profitability Analysis ? Technical things ?

0 Answers   Accenture,






What is the treatment of 'Gain/Loss on FG' in cost centre accounting.

0 Answers   IBM,


I have a company ABCD. under that i created three company codes using same fiscal year (April- March) and same chart of accounts. Three companies are located in different countries. One of the country located in USA. So i need to draw financial statements in USA for the period Jan- Dec. So anyone can explain how to draw financial statements respective period.

5 Answers   IBM,


Hi I want to join SAP FICO module. Can anybody help me which institute and the faculty are best !

3 Answers  


WHAT IS THE MEANING OF SORT KEY? WHY DID U SELECT AT THE TIME OF GL CREATION? WHAT IS THE DIFFERENCE BETWEEN ACCOUNT CURRENCY AND CO.CODE CURRENCY AND ONLY BALANCES IN LOCAL CURRENCY?

7 Answers  


where your servers are located?

3 Answers   Reliance,


What is VERSION Management in SAP?

5 Answers   IBM,


can one coa be assigned to several companies..?

3 Answers  






Categories
  • SAP Basis Interview Questions SAP Basis (1089)
  • SAP ABAP Interview Questions SAP ABAP (2632)
  • SAPScript Interview Questions SAPScript (130)
  • SAP SD Interview Questions SAP SD (2202)
  • SAP MM Interview Questions SAP MM (415)
  • SAP QM Interview Questions SAP QM (11)
  • SAP PP Interview Questions SAP PP (317)
  • SAP PM Interview Questions SAP PM (23)
  • SAP PS Interview Questions SAP PS (23)
  • SAP FI CO Interview Questions SAP FI CO (1837)
  • SAP HR Interview Questions SAP HR (445)
  • SAP CRM Interview Questions SAP CRM (285)
  • SAP SRM Interview Questions SAP SRM (31)
  • SAP APO Interview Questions SAP APO (18)
  • SAP Business Warehouse Interview Questions SAP Business Warehouse (673)
  • SAP Business Workflow Interview Questions SAP Business Workflow (9)
  • SAP Security Interview Questions SAP Security (450)
  • SAP Interfaces Interview Questions SAP Interfaces (74)
  • SAP Netweaver Interview Questions SAP Netweaver (180)
  • SAP ALE IDocs Interview Questions SAP ALE IDocs (49)
  • SAP B1 Interview Questions SAP B1 (66)
  • SAP Business Objects BO BOBJ Interview Questions SAP Business Objects BO BOBJ (61)
  • SAP CPS Interview Questions SAP CPS (14)
  • SAP GTS Interview Questions SAP GTS (8)
  • SAP Hybris Interview Questions SAP Hybris (15)
  • SAP HANA Interview Questions SAP HANA (79)
  • SAP PI Process Integration Interview Questions SAP PI Process Integration (0)
  • SAP PO Process Orchestration Interview Questions SAP PO Process Orchestration (0)
  • SAP BI Business Intelligence Interview Questions SAP BI Business Intelligence (0)
  • SAP BPC (Business Planning and Consolidation) Interview Questions SAP BPC (Business Planning and Consolidation) (0)
  • SAP BODS (Business Objects Data Services) Interview Questions SAP BODS (Business Objects Data Services) (0)
  • SAP BODI (Business Objects Data Integrator) Interview Questions SAP BODI (Business Objects Data Integrator) (0)
  • SAP Ariba Interview Questions SAP Ariba (0)
  • SAP Fiori Interview Questions SAP Fiori (0)
  • SAP EWM (Extended Warehouse Management) Interview Questions SAP EWM (Extended Warehouse Management) (0)
  • SAP AllOther Interview Questions SAP AllOther (121)