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Importance of Profit Center

Former Member
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Hii

Can anybody explain me the importance of using Profit center in material master, and at what  level it`s stored?

Thanks & Regards,

Poonam Patil.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi,

Broadly, profit center in SAP is an organisational unit within a company that is used to track where profits are accured from.

Profit Center is stored at Material & Plant level in Material Master table/field: MARC-PRCTR. It is a required field for creating financial posting when Goods Receipt or Invoice Receipt are done.

one can keep track of posting at profit Center level in case of Profit Center accounting

Rgds,

Ganesh

Answers (3)

Answers (3)

former_member225662
Active Contributor
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HI,

Check the link

Regards

KK

Former Member
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Hi

Profit Center Accounting provides visibility of an organizationu2019s profit and losses by profit center. The methods which can be utilized for EC-PCA (Profit Center Accounting) are period accounting or by the cost-of-sales approach. Profit Centers can be set-up to identify product lines, divisions, geographical regions, offices, production sites or by functions. Profit Centers are used for Internal Control purposes enabling management the ability to review areas of responsibility within their organization. The difference between a Cost Center and a Profit Center is that the Cost Center represents individual costs incurred during a given period and Profit Centers contain the balances of costs and revenues.

For more information see the link

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/ECPCA/ECPCA.pdf

regards

Antony

Former Member
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profit center is maintained to analyse the business at location level, i.e. region wise, district wise, state wise or any other means like this.

in SAP it is maintained at company code level.