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whats the difference between profit center and bussiness
area?

Answers were Sorted based on User's Feedback



whats the difference between profit center and bussiness area?..

Answer / 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

whats the difference between profit center and bussiness area?..

Answer / sanjay

Profit Center - The profit center view shows the various
internal areas of responsibilities. Objects such as cost
centers, materials, etc can be used for profit center
analysis. Profit center can be used to determine the
revenues, costs, and profitability for specfic areas of
responsibility.

Business Area - Business area forms an important part of
external reporting. Analysis of various segments, product
divisions, regions etc is possible using business areas.

Is This Answer Correct ?    3 Yes 0 No

whats the difference between profit center and bussiness area?..

Answer / ramu naidu

Business Area is an optional entry.Whenever company wants
financial statements businessarea wise we can maintain
BAs.And also we can maintain BA as Segment Wise,Product
Wise,Geographical Location wise.

Profit center is used to know the profits of companies.PC
is also used for to know the profits as aProduct
wise,Segment wise,geographical location wise.If anything
wrong inthis answer plz correct me..

Is This Answer Correct ?    1 Yes 0 No

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