What is the basic purpose of creating a Profit Center?

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What is the basic purpose of creating a Profit Center?

Post  michael_fico on Fri Mar 23, 2012 8:05 pm


The basic purpose of creating a Profit Center is to analyse the revenues
and costs for a particular product line, or a plant or a business unit.
Though you can generate balance sheets and profit and loss accounts
per Profit Center still a profit center should basically be used as a tool
only for internal reporting purposes.

If legally one has to produce the Balance sheets and Profit and Loss
Accounts for a profit center then it is advisable to create it as a company
code instead of a profit center

michael_fico

Posts : 163
Join date : 2012-03-23

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