Following link would be help ful:
Following link would also be helpful:
hope this helps.
please assign points as way to say thanks
An organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control. Normally revenue are accured in profit center. eg., product line, location etc.,
An organizational unit within a controlling area that
represents a defined location of cost incurrence.
The definition can be based on:
o Functional requirements
o Allocation criteria
o Physical location
o Responsibility for costs
You assign a cost center to a profit center so that you can see the profitability.
You can have all the cost elements(Profit & Loss - Expenses) related used in cost center.
Only revenue related elements are used in profit center.