Interested to Buy Any Domain ? << Click Here >> for more details...
Hi
What is the Major Difference Between Profit Center and
Business Area
- 12 Answers
- 34895 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
Differentiate between real and statistical postings in co? : co- general controlling
Explain in simple terms what is field status and what does it control?
What are the important organizational units in fi?
What is clearing? : fi- general ledger accounting
Describe how the implementation of a cost center structure could (or won't) lead to decreasing indirect costs? And can you think of any other ways to control indirect costs?
Is linux supported as a frontend platform?
What is known as a repeat run in the depreciation process? : fi- asset accounting
What is depreciation key? : fi- asset accounting
What is the meaning of accrual calculation? : cost center accounting
Please give me customization setting for FI/Co - CIN? up to vendor/customer invoice posting for excise/service tax / withholding tax? as a fi consultant what are the settings to be done? pls is there any website for the CIN separately for self learning? rgds, Bindu
SAP DEPRECIATION RUN ERROR: I have a problem with depreciation posting. I have searched the forum but did not find any answer. Net book value of $ 559,350 as on April 2012 was fully depreciated by 31 Mar 2017. Additions between April 2012 and March 2017 were correctly depreciated. However, additions from 01 Apr 2017 were fully depreciated when depreciation program was executed. For example, asset acquisition on 01 May 2017 $ 2400 was fully depreciated ($ 2400) which is not correct. It should be $ 2000*20%/12*11 = $ 440. Subsequently, in Jan 2018, on the acquisition of $ 207, the system has posted a positive depreciation of $ 47,469 on the base value of $ 1,640,423.72!!! More surprisingly, acquisition after that is correctly depreciated. For example, acquisition on Jan of $ 3,488.94 was correctly depreciated by $ 174.45 (3488.94*20%/12*3 months). Here are the details of the configuration of depreciation: · Depreciation method SLM · Base method 0014 · Useful life: 5 years (20% depreciation). · Period control 01/01/01/01 · Depreciation after the end of planned life – the box is “checked”. · There is only ordinary depreciation. · “Only negative values and zero allowed” checked in Rule for positive/negative sign for ordinary depreciation in Depreciation Area. · Fiscal year: April to March · SAP ECC 6.0 Can anybody suggest/help how to fix this?
Why do we perform cost center planning? : cost center accounting
How do you open and close periods?
How does sap go about costing a product having multiple bill of materials within it?
Why does the system not calculate variance for the 500 kgs which has been delivered?
