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Former Member

PCA and CCA

What is PCA and CCA?

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    Former Member
    Aug 22, 2007 at 01:47 PM

    Hi KP,

    Profit Center Accounting provides visibility of an organization’s profit and losses by profit center. The methods which can be utilized for EC-PCA (Profit Center Accounting) are period accounting or by the cost-of-sales approach. Profit Centers can be set-up to identify product lines, divisions, geographical regions, offices, production sites or by functions. Profit Centers are used for Internal Control purposes enabling management the ability to review areas of responsibility within their organization. The difference between a Cost Center and a Profit Center is that the Cost Center represents individual costs incurred during a given period and Profit Centers contain the balances of costs and revenues.

    Cost Center Accounting provides information on the costs incurred by your business. Within SAP, you have the ability to assign Cost Centers to departments and /or Managers responsible for certain areas of the business as well as functional areas within your organization. Cost Centers can be created for such functional areas as Marketing, Purchasing, Human Resources, Finance, Facilities, Information Systems, Administrative Support, Legal, Shipping/Receiving, or even Quality.

    Some of the benefits of Cost Center Accounting : (1) Managers can set Budget /Cost Center targets; (2) Cost Center visibility of functional departments/areas of your business; (3) Planning ; (4) Availability of Cost allocation methods; and (5) Assessments/Distribution of costs to other cost objects.

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    Regards

    Genie

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    Former Member
    Aug 22, 2007 at 01:46 PM

    PCA is profi center accounting. Profit center is nothing either location of a division or product line. At a profit center you can get a balanced balance sheet and profit and loss for either division or product line.

    CCA is Cost center accounting. Cost center is your department. It isa place where you collect all your cost relating to a department.

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