Functioanl hlp

[Former Member]

Frnds what is the meaning of "Profit center"?

thanking u all.

regards,

satya

[Former Member · Accepted solution]

Hi,

for example, take a resource in the soft ware company, if he is in projet, he is profit to the company. If he is on bench he is cost to the company.

Any resoure, transaction, activity if it brings profit then it is profit centre, if it some kind of expenditure which wont give profit then it is cost centre.

sorry if my thinking is wrong or not revelent to your question

Anil

[Former Member]

Hi Satya,

Profit Centers are used for Internal Control purposes enabling management the ability to review areas of responsibility within their organization. Profit Centers can be set-up to identify product lines, divisions, geographical regions, offices, production sites or by functions. It provides visibility of an organization’s profit and losses.

Regards,

Please reward points if helpful.

[Former Member]

HI Satya,

go thr below link:

http://help.sap.com/saphelp_47x200/helpdata/en/eb/13811243c411d1896f0000e8322d00/frameset.htm

All revenues earned are accounted using Profit centre. As all sales revenues are the profit earned by company. the segment/dept earned this revenues need to be known hence we have profit centre accounting.

reward if it helps

regards

Srini