Profit center & business area

[Former Member]

Hi,

Why we are now going for profit center than the earlier used business area. Is there any list of better functionlaity in this regard.

Thanks

[Former Member · Accepted solution]

Hi,

Business areas are defined at client level and are avialble to pick up during posting w/o any mapping of Company code on to Business area.There is no guarentee that all the transaction have been posted in full - example material transfer from plant to plant where each is representing diff.BA- as for as Busines area is concerned, Tax entries from tax codes etc.

But in the case of Profit centers it could be mappend in a tigh way and any entry not mapped to profit center is routed to dumm - which is manadatory in PCA- so that it could be identified an handled properly.

These are the distinct features that enable PCA better compared to BA.

Regards

K Khatri

[stacey_koehler · Accepted solution]

Is profit center available on every transaction that get posted. We have been using BA, but are in the process of upgrading to ECC6 & susbt rules no longer work for BA field. We have to be able to split the company into either BA= AAA or BA = BBB, no blanks, etc. Is this possible w/profit center. Does it also post on the SPL doc? We have not upgraded to the new GL on ECC 6.0.

Thanks in advance for any guidance..

Stacey

[Former Member]

Hi,

The business area functionality is now replaced by the segment functionality.

Profiit center has not been replaced.

SAP now supports the segment functionality, so its better than business area.

Regards,

Kiran

[Former Member]

Hi Divya,

This is a good question.

This question is usually very disputable. But both business areas and profit centers are created for internal reporting, But many companies now a days go for profit center as there is afeeling that business area enhancements would not be supported by SAP in future versions.

I hope it is clear.

Thanks & Regards,

Haribabu Bodapudi