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Differnce between cost center & profit center

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Dear all,

I need clarification for Differnce between cost center & profit center with examples

Thanks & regards

Sravya

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2 Answers

  • Best Answer
    Oct 16, 2008 at 09:43 AM

    Hi

    Simply....Cost centre inlcudes all costs includes in that particular cost centre where as profit centre includes both cost and revenues of the profit centre and there by arriving profit. Cost centres while creating at TCode KS01 are assigned to profit centres

    Cheers

    Srinivas

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    Former Member
    Oct 16, 2008 at 09:52 AM

    Hello Sravya,

    The main difference between Cost Center and Profit Center is that cost center describes individual balances incurred during a given period and profit center contains balances of costs and revenues. If PCA is active, it is recommended that you always assign a profit center to cost center master record in TC: KS01/KS02

    Thanks

    Para

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