Operating Concern role

[Former Member]

Guruus,

What is operating concern..? what importance it goint to play?Can any explain the generic process relating to the Operating Concern

Regards,

Ramesh

[Former Member]

Hi

Operating concern is an organizational element for CO-PA (Profitability analysis). By activating this, system would capture the Costs and revenue under this and the same would be available for profitability analysis in various dimensions - say product wise, customer wise, sales area wise, division wise, profit center wise etc

Thank You,

[Former Member]

Ramesh

Operating Concern

A representation of a part of an organization for which the sales market is structured in a uniform manner.

By setting off the costs against the revenues, you can calculate an operating profit for the individual market segments that are defined by a combination of classifying characteristics (such as product group, customer group, country, or distribution channel). The market segments are called profitability segments.

You can assign multiple controlling areas to one operating concern.

Rgds

Rajendra