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whats the difference between profit center and bussiness
area?

Answer Posted / 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



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