organizational unit

[Former Member]

Hello Everybody,

i would you like to know why we assign the profit center to the business area and to the segment???

thank you in advance

[Former Member]

Thank you so much for your answer

[Former Member]

Hi,

Business Area A business area is a component of one or more company codes within the same controlling area that is set up for internal reporting purposes. For example, two or more companies that sell the same product line (among other lines sold) may create a business area to report the combined results of that shared product line.  Business areas are created in the FI module. Balance sheets and income statements may be created within FI for business areas.

Profit Center Profit centers are similar to business areas, in the sense that they are set up for internal reporting purposes. However, profit centers are formally defined as components of a controlling area, not as components of one or more company codes. Income statements may be created for profit centers, and selected assets may also be reported for profit centers, but not complete balance sheets (which can be done for  business areas –see above)."

Help on profit center: http://help.sap.com/saphelp_erp2005/helpdata/en/ff/277203deea11d3b5b4006094b9b0a5/frameset.htm

from the link http://www.lasalle.edu/~borkowsk/Controlling.Notes.SAPex4.htm

Thanks,

Nitin Nikhade