which option is best in between Business Area or Profit
center for generating balance sheet & P/L a/c while using
ECC 6.
Answer Posted / mk
I think that the balance sheet should be at the company code
level. I see no use of a balance sheet created for a proft
center or even a business area. Balance sheet has items
like equity capital, cash, retained earnings which belong to
the legal entity and not broken up by a business area or a
profit center.
As for P&L statement, they can be created by either Business
area or the Profit Center and depending upon your use of
business area or profit center the usability of either
option can be argued. However, the purpose of profit
centers "is" to determine the profitabilty of a business
operation, a department or even a person. So, a profit
center specific P&L will shed light on the profitability (or
not) of that profit center. That could be useful in taking
decisions such as continuing or discontinuing with that
profit center or trim costs or reorganize resources.
Is This Answer Correct ? | 2 Yes | 1 No |
Post New Answer View All Answers
What is the use of special periods?
a cost element is used for some cost center but only in some case like discount allowed particular internal order should be picked? can any one help me?
What is the sap linuxlab?
Differentiate between residual payment and part payment.
If U Need Anyone Home Tutor for SAP FICO,contact 8951845120 Very Less Fee With Real time Issues Discussion.in Marathahalli Surrounding Area,Banglore
What is the purpose of a "document type" in sap?
What are the different types of data in sap system? : cost center accounting
What is an activity type? For each work center what are different activity types that can be performed? : cost center accounting
Why do we create an internal order? : cost center accounting
what is the configuration steps of letter of credit?
What do you mean by balances in local currency only? : fi- general ledger accounting
if New plant is arrived what are the pre checks we will perform from Controlling end?
chart of accounts are created at client level but why we are assigning to Co.cd ?
Where does TDS codes maintain and which fields are updated for TDS calculation for invoice/Advance
Describe organisational structure in sap ?