whats the difference between business area and profit center.
Answers were Sorted based on User's Feedback
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 ?||26 Yes||0 No|
Answer / srinivas
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||8 No|
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 ?||5 Yes||2 No|
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 ?||3 Yes||0 No|
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|
Answer / guest
Business area is defined inorder to generate internal
Profit centre is a center where a separate responsibility is
assign to a center.
|Is This Answer Correct ?||8 Yes||7 No|
Answer / purushothaman kannan
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
Based on the above responsble profit centre derive the
profit (only profit) (revenue minus expenses). Internal
|Is This Answer Correct ?||1 Yes||5 No|
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