> hi,
> 1) what is the difference for cost center and profit center?
<b>You use Cost Center Accounting for controlling purposes within your organization. The costs incurred by your organization should be transparent. This enables you to check the profitability of individual functional areas and provide decision-making data for management. This requires that all costs be assigned according to their source. However, source-related assignment is especially difficult for overhead costs. Cost Center Accounting lets you analyze the overhead costs according to where they were incurred within the organization
Cost center Recording costs with reference to plan values
Profit centers Calculating operating results
Profit centers are also called company within company since each company is broken into individual profit center for performance and evaluation and within each profit center they are further subdivided into cost ceters for monitoring the costs.</b>
> 2) what is the difference for statistical posting in
> FI and CO.
<b>Example of statistical posting is payment request. By creating a payment request no accounting entries are passed. To my knowledge there is no statistical posting in CO</b>
> 3) what does it mean by 'always make statistical
> posting to profit center?
<b>U will not me making directly in profit center accounting. Posting to profit center accounting will be effected through another cost objects like Internal order, cost center etc which in turn will derive the postings in profit center. That is why it is called statistical postings in profit center</b>.
> thanks
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