Differnce between cost center & profit center

[Former Member]

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Dear all,

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

Thanks & regards

Sravya

[srinivasa_maruvada · Accepted solution]

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

[Former Member]

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