Skip to Content
author's profile photo Former Member
Former Member

PROFIT CENTRE

Hi Gurus,

What is the importance of Profit Centre in SAP.

Can anybody explain in detail.

BSR

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

2 Answers

  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Sep 20, 2007 at 09:31 AM

    Hello

    The Enterprise Controlling component (EC) is a powerful, integrated system which provides efficient, up‑to‑date information for controlling your group or company.

    EC consists of the applications Executive Information System (EC‑EIS), Consolidation (EC‑CS) and Profit Center Accounting (EC‑PCA).

    The Enterprise Controlling component (EC) is a powerful, integrated system which provides efficient, up‑to‑date information for controlling your group or company.

    EC consists of the applications Executive Information System (EC‑EIS), Consolidation (EC‑CS) and Profit Center Accounting (EC‑PCA).

    Profit Center Accounting (EC-PCA)

    Profit Center Accounting forms an interface between the operative controlling (CO) applications and the Enterprise Controlling (EC) module. It reflects the actual and plan postings from operative controlling and settlement components, with which it is integrated in real‑time. It then summarizes this data according to profit centers, which reflect the internal structure of areas of responsibility within your company.

    Profit Center Accounting primarily serves to calculate internal (plan and actual) results according to the period accounting approach. If the function area is specified for the data in the controlling components, you can also analyze results using the cost‑of‑sales approach.

    In addition, EC‑PCA lets you analyze certain balance sheet items by profit center. This also makes it possible to control the necessary key figures for an area of responsibility.

    If you store values flows in multiple fields using different valuation methods, you have the option of valuating goods movements with transfer prices in Profit Center Accounting.

    Profit Center Accounting is account‑based. That means, the values are updated in EC‑PCA according to account. Consequently, you can reconcile the data here with that in Financial Accounting.

    You can modify or supplement both actual and plan data taken from the operative components to meet your company’s requirements for Profit Center Accounting (assessment/distribution). You can then use this data as a basis for a more strategic analysis using EC‑EIS.

    Multiple profit center hierarchies (profit‑oriented, functional, regional, and so on) make it possible to analyze data in different ways in multidimensional organizations. Through the elimination of internal business you can also represent data at higher hierarchical levels.

    EC‑PCA provides you with a comprehensive and flexible information system for analyzing your data by period. You can access the original postings from FI, CO, SD, MM, and so on directly to identify potential weaknesses. Using the report/report interface, you can drill down to the information systems of other components

    Reg

    *assign points if useful

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Sep 20, 2007 at 09:32 AM

    An organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control.

    Operating results for profit centers can be analyzed using either the cost of sales approach or the period accounting approach.

    By analyzing the fixed capital as well, you can expand your profit centers for use as investment centers.

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.