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Cost Center/Profit Center

Former Member
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I have only done FI part. wnt to learn smething abt Co

Can you tell me wht do u mean by -

1 Cost element

2 Cost Center

3 Cost Center Accounting

4 Profit Center

5 Profit Center Accounting.

6 wht is the difference between Cost center & Profit Center?

Is there any concept of FI-CO integration? If yes how is it done?


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Answers (2)

Former Member
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<b>Cost element</b> It tells you on what item u r incurring cost Ex salary,rent .

<b>Cost Center</b> It defines a location of cost.It tells you where u r incurring cost.Ex canteen dept, paint shop, maintenance dept.

<b>Cost center A/Cing</b> Cost center a/cing makes it possible to analyze cost accordibg to where they were occurred in organization

<b>Profit center</b> It is an organizational sub-unit that bears responsibility for revenues as well as cost.

<b>Profit center A/Cing</b> it is used to know

product wise profitability

Location wise profitability(Factory, sales,Branch)

Function wise profitability(R&D function, sales function)


Major difference is cost center collects only cost profit center collects cost as well as revenue and give u the profit.

<b>Intergration</b> data flow form FI to CO through G/L account which are treated as cost elements in CO

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Former Member
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Hi provide your personal mail id

i will send detailed screen shots so that you can understand better



accenture - hyd

Former Member
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