whats the difference between profit center and bussiness
area?
Answer Posted / krishna
Business Area: This is optional
This can be used cross compane codes
This is for Internal Purpose
It is not Legal Entity like Co Code
The transation entered in Business are, Debit total will
not tally with credit total
Since it is used for segment wise or area wise or line wise
this is used for internal report purpose only .
Balance Shhet and P & L stataments can be drawn on segment
wise
Profit Centre: Generally in terms of SAP or Finance the
meaning of Profit centre is to know the profitabilty.
In same manner , The managers wants to know the ROI from
their investments, obviously we nned to use the tool.
This ROI may be geographically or area wise or division
wise. P.C provided us profitablity of the particular area
for internal purpose ( Only for Internal )
Is This Answer Correct ? | 5 Yes | 0 No |
Post New Answer View All Answers
What are all the major components of a chart of accounts?
What do you mean by period based accounting (gl based) and cost of sales accounting (copa based)? Period based accounting? : co-pa
What is the number of configured currencies per company code?
What is the meaning of ADHOC P.O's Do we create Adhoc P.O's to our regular Vendors.What are the Tax aspects in this Issue.
What is iban number in sap ?
Will the fi document be created with the purchase order (po)? : fi- accounts payable
How to setup the performance base payment process?
What is sap fico?
what are the advantages & dis advantages document splitting in fico? where as we can see the reports gl a/c wise & particular vendor/customer/document wise why we prefer doc splitting? let me know the possible answer soon. asked @ Accenture.
HOW TO ACTIVATE SEGMENT FILED IN ASSET ACCOUNTING ALSO CAN WE GET SEGMENT WISE FINANCIAL STATEMENTS IF YES THEN WHY WE ARE SPECIFYING BUSINESS AREA WISE FIN. STATEMENTS IN GLOBAL PARAMETERS (OBY6)
Explain posting of costs to cost centers? : co- cost center accounting
What is a company in sap ?
I want to learn SAP-FSCM, for past 6 months iam searching for best trainer or tutor in Hyderabad. who can teach SAP-FSCM (Treasury & Risk management) My Request to all any one who known about best faculty. Please share. Thanks.
How data flows from sd to copa? : co-pa
What is product cost controlling (co-pc)? : co- general controlling