what is the impact of business area and cost center in the sales document

[Former Member]

Hi all

I have small doubt regarding what is the impact of bussiness area and cost center in the sales document... what is the uses of these (bussiness area, cost center) is help full for sd module

can any one reply plz....

Thanking you

[Former Member]

Hi,

Business Area determines where the revenue should be allocated when you sell a material or a service.

For eg: If your customer is in say Mumbai and he is ordering for a service in Delhi (say DIAL - Delhi International Airport Limited) then based on the terminology.

Your customer would belong to B Basis Business Area - WHERE THE REVENUE IS COMING FROM or WHERE YOUR CUSTOMER BELONGS TO (SALES OFFICE).

Whereas your DIAL sales will belong to A Basis Business Area - WHERE THE REVENUE IS GOING TO.

Cost Center would determine where your allocate your cost to.

Say Rounding Off can be used as a cost element, because some sort of revenue is lost when figures are roudned off..

Hope it clarifies your doubt.

Reward points if satisfactory

Regards

Ravi.D.Mansharamani