Company code vs profit center in FI

Hi all,
   I have a question in restructuring our financial organization in sap.  We are one company with one operating concern, one controlling area, one company code and one chart of account.  We also have several locations in America.  Lately, we have acquired another company with several other locations in America.
There are 2 ways of including the new company when we restructure in sap financial side.
A) Use company code to represent each company.
Thus, under our holding company, we would have our company, new company location A, new company location B, new company location C and one  company for real estate purpose for our building.   This means 5 new company codes with multiple chart of accounts.
B) Use profit centers to represent each company
Thus, we would have 5 new profit centers.
Both ways work very well for income statement. Option B is a little iffy on Balance Sheet.
Question is:  How easy is it to maintain separate Balance Sheet between option A and B ?
What are the pro and cons of both options ?
Have anyone come across this ?
thanks
Joyce

Hi ,
It is always recommended to go with , 1 co code per seperate legal entity as explained by ajay .
Moreover you can have balance sheet and profit and loss a/c at profit center level with New GL .
Also check on the operational issues like for Eg. depritiation run can be executed at co code level only and not at profit center level just for example . then a question should not come why have we not considered this at the time of org structure finalization .
Secondly , also check on the authorization issues in case of Assets account to be particular as the authorizations work at co code level and at asset class level . so if a requirement comes that profit center wise viewing should happen then you will have to move on to have modifications .
I would suggest that along with your considerations on legal reporting and keeping in mind the operation issues that may crop up take a final call on the same .
Regards ,
Dewang T

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