Difference Between Profitability Analysis and Profit Center Accounting

Profitability analysis lets you analyze the profitability of segments of your market according to products, customers, regions, division. It provides your sales, marketing, planning and management organizations with decision support from a market oriented view point.

Profit center accounting lets you analyze profit and loss for profit centers. It makes it possible to evaluate different areas or units within your company. Profit center can be structured according to region, plants, functions or products (product ranges).

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1. Profit Center Accounting Course Contents Understand the functions in Profit Center Accounting. Explain Profitability management in SAP. Understand and maintain CO-PCA master data. Identify the source of actual values. Execute planning. Use the...
2. Account Based Profitability Analysis and Costing Based Profitability Analysis Differences Account based Profitability analysis is a form of Profitability analysis (PA) that uses accounts as its base and has an account based approach. It uses costs and revenue elements....
3. Cost Center and Profit Center Cost Center An organizational unit within a controlling area that represents a defined location of cost incurrence. The requirement at Greaves is to capture the costs Department wise. Cost centers...
4. Profitability Analysis Course Objective Understand the functions in Profitability Analysis. Explain Profitability management in SAP. Understand CO-PA structures and master data. Identify the source of actual values. Understand planning. Use the CO-PA...
5. Profitability Analysis reports Profitability Analysis reports (COPA module) has to deal with huge amount of characteristics such as products, product hierarchy, customers, country, profit center and many more characteristics. This can cause performance...
6. Profit Center Group Profit center group can be created using KCH1, changed with KCH2 and displayed with KCH3. A profit center group is a hierachical structure of profit centers. We can use profit...
7. Functionality of the Profitability Analysis Module The operating Concern is the highest node in Profitability Analysis. The operating concern is assigned to the Controlling Area. Within the operating concern all the transactions of Profitability Analysis are...
8. Characteristic Derivation in Profitability Analysis Module Characteristic Derivation is usually used when you want to derive the characteristics . An example of this could be say you want to derive the first two characteristics of product...
9. Revenues and Costs flow in Profitability Analysis The Sales Revenue comes from the Condition Type in SD. We need to map the Condition Type in SD to the respective value fields in customizing to have the revenue...
10. Purpose of Creating a Profit Center? 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...
11. Cost and Revenue Flow To The Profit Center The profit center is stored in the cost center this way the costs flow to the profit center. The profit center is also stored in material master. This way all...
12. Cost and Revenue Flow To The Profit Center The profit center is stored in the cost center this way the costs flow to the profit center. The profit center is also stored in material master. This way all...
13. Profit Center Group – Quick Reference The Quick reference on Profit Center Group will provide you all the steps in: Create Profit Center Group – KCH1 Change Profit Center Group – KCH2 Display Profit Center Group...
14. Fixed Asset data Migration with Active Profit Center Data migration is slightly different from a normal transaction which happens in Asset accounting module. Normally, in asset accounting the day to day transactions is posted with values through FI...
15. Cost Center Accounting To gain understanding of key business processes of SAP Overhead Cost Management (OCM) Understand the Organizational unit in Controlling Determine the origin of posting in Cost center Accounting The Overhead...