Profit centre & Business Area in SD

[Former Member]

hello

I have some doubts.

I want to know what is sifnificance of Profit centre in SD. where it is used?

And my second question is do we maintain business area only for material?Is it used only to determine G/L accounts onl?.

So please update my knowledge.

thanks

Debu

[Former Member]

HI

The profit center valuation view shows you the cost of goods manufactured from the profit center viewpoint and valuation according to transfer price conditions

Business areas are primarily used to facilitate external segment reporting across company codes, covering the company's main areas of operation (product lines, branches).

You can assign all balance sheet items, such as fixed assets, receivables, payables, and material stock, as well as the entire P&L statement directly to business areas. You can only assign banks, equity, and taxes manually to business areas indirectly. For this reason, it is not possible to create the legally-required financial statements and tax reports at business area level. Financial statements at business area level are therefore only suitable for internal reporting.

Raghu