Hi
What is the Major Difference Between Profit Center and
Business Area
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Answer Posted / rabi narayan sahoo& biswarmbar
Business Area and profit centre literally means same.
In Business area,we analyse results products wise(more
products) and use for financial report purpose.
Profit centre results analyse product wise(one-to-one) and
usede for controlling purpose.
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Hi all see the problem is, suppose i sold goods to customer 10 units @ 120 & my COGS (cost of goods sold) is 100 per unit . After that he told me your quality is not good ok & u r charging high 4 that i will pay you only 110 rs for that otherwise i will return ur goods. After that i made 1 credit memo 4 that of rs 10 ok. now the issue is it is also affecting the COGS but it has to remain same And will effect at profit & my profit must be reduced from 20 rs per unit to 10rs per unit & COGS must remain constant i.e is 100 rs
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