Interested to Buy Any Domain ? << Click Here >> for more details...
Hi
What is the Major Difference Between Profit Center and
Business Area
- 12 Answers
- 34542 Views
- Cognizant, I also Faced
- E-Mail Answers
Answer Posted / soumo
Business area will have many profit centers. For example Vehicle is a business area in a company. Vehicle can be cars and Bikes etc. Here Vehicle is business area and Cars and Bike are profit centers. In broad Vehicle is a profit center. But as it has sub areas those are profit centers. So profit centers cannot be replaced with business area and vice versa. We can replace business area by Profit centre, only condition is that it should be in same controlling area. The business area is more like a business unit of a company. You can have multiple profit centers within a business area.
Main distinguish factor is that distribution and assessment in possible in profit center but not in business area.
One more distinction is that Business area need not be attached to any organisation structure. But profit centres can be created only under the controlling area. Business area can be across controlling area.
Business area concept is used for making strategic decisions by the management whereas the primary purpose of profit centre accounting is responsibility accounting.
| Is This Answer Correct ? | 0 Yes | 1 No |
Post New Answer View All Answers
Explain manual secondary cost planning? : co- cost center accounting
Will the fi document be created with the purchase order (po)? : fi- accounts payable
What is the credit control area in sap?
What is an “asset under construction”?
What are the necessities of a dialog program must complete?
How to estimate the Cost step by step ?
Define meta data, master data and transaction data?
Differentiate free offsetting entry from a statistical posting? : fi- accounts payable
How do you define number ranges in co? : co- general controlling
how to control transport cost with sale invoices :- I want to know how to map tranport cost with respective sale invoices. This help us to avoid duplicate transport payment. As in PO freight condition is maintained ,is there is anyway to link or map transport cost with sale invoices
Differentiate between account assignment model, recurring entries and sample document? : fi- general ledger
Is it possible to print the financial statement version on a sapscript form?
What do you understand by product costing in sap controlling? : cost center accounting
What is the use of special periods?
What are distribution keys? : co- cost center accounting
