Difference between Business area and Profit center
Elaborate the below two terms in detail.
1. What is the relation of business area and company code.
2. What is the relation of business area with profit center.
1. What is the relation of business area and company code.
Business Areas can be used across different company codes and are mainly used for different product or business segments for which a company wants to have separate financials.
Business Area is External Reporting Purpose, Company code is Maintain Legal Enity.
2. What is the relation of business area with profit center.
Profit centre on the other hand can be related to specific location resposible for generating profits which may be through different products segments symbolising different business areas
Profit centre is classifed according to the revenue earning oints in the org,