line of business as a profit centre n cost centre

[Former Member]

Hi Gurus

I have a question that if there is 1 company code and there are 5 line of business can we treat each line of business as a profit centre n cost centre and take out P/L a/c and B/S on that level? wht will be the requirement for that? Can we treat that LOB as a Plant?

Please respond as it is urgent to decide

Thanks

[Former Member]

Also plz tell me how can I use segments for the LOB?will P/L a/c and B/S be generated at this level?

[Former Member]

Hi Mayank

Thanks for the prompt reply . So the P/L a/c and the B/S can be taken out at the Profit Centre level but how ...can you plz tell me ?

|Ur answer will be of great help to me.

[Former Member]

Hi,

Don't get confused between profit centers and cost centers. Cost centers are meant for capturing cost. Profit centers are used for reporting purpose.

Creating plant for each LOB is not suggestible. Again it depends from case to case.

In your case you can create profit centers for each LOB. Alternatively you can also use segments for each LOB.

Regards,

Mayank