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Re: Business Area Vs Profit Center

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Hi

You need to refer to the definition of both business area and profit center in order to choose the right option to be able to present the P&L for specific area.. " in my opinion business area use will meet you demand"

 

Business area: Business areas represent separate areas of operation within an organization and can be used across company codes. They are balancing entities that can create their own set of financial statements for internal or external purposes. It is therefore possible to save and evaluate transaction figures for each business area.

 

Profit center: The profit center evaluates the success of individual  independent areas within a company. These areas are responsible for costs and revenue. The aim of the profit center invoice is to provide an internal analysis of profits. From an Accounting point of view it must be determined whether

only a profit and loss statement at profit center level is to be created (document breakdown not active) or whether a financial statement is also to be created (document breakdown active).

 

Regards

Mahmoud EL Nady


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