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business area

Former Member
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44

why the orgnization give the preferences profit center, why don't give the business areas, have u given any spefic reason for this one.

plz give ur brief ideas

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Answers (1)

Answers (1)

Former Member
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Hi,

Business Areas concept was introduced in earlier versions of SAP. Subsequently Profit Center Accounting module is introduced by SAP. SAP has recommended to implement PCA instead of Business Areas. In the latest version ECC 6.0 - Profit Centers has got an excellent functionality, which was not there in earlier versions like 4.6C / 4.7 Enterprise version.

Thanks

Murali.

Former Member
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murali thanks for ur response about my question:-

any how plz just give variation in business areas and profit centers, in older versions and new versions,

plz give ur brief ideas....

Former Member
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Hi,

Let us take a Business Group is in the business of Computer Hardware, Industrial Machinery, Insurance, Media etc. This group has Legal entities set up across the globe in Asia Pacific, Europe, North America.

Assuming one Company Code in Asia Pacific, Europe and North America - and each entity is all / some of the above Businesses. In this scenario each of the different Business can be defined as a Profit Center (or Business Area in earlier version).

If New GL functionality is implemented Profit Centers and segments can be used. Reporting functionality is enhanced in Profit Center Accounting.

Thanks

Murali.

Former Member
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Hi Mulari,

Could you please tell me, what are the new funcionalities for Profit cente in Version ECC 6 .0?

Thanks

André