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whats the difference between business area and profit center.

Answer Posted / 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 ?    30 Yes 12 No



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