Interview Questions Answers in SAP FI-CO (Financial Accounting & Controlling)

suraj mohapatra

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Question { TCS, 39941 }

whats the difference between business area and profit center.

Answer

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.

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