Difference between business area and costcenter

Hi All,
Could u pls let me know the differences between Business Area and Cost Center.
Awaiting ur valuable responses.
Thanks & Regards
Chennuri

Hi,
i am giving a realtime information on business areas and cost centers.
For our company we have 25 branches. in sap we treat all of our branches as a seperate business area. the reason why we maintain business area. at the month end or year end financial statemensts are generated on company code basis and business area base. so we consider branches as a business area.
Cost center is like a cost object.
Hope this is clear,
Regards,
Sankar

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Difference between Business area and profit center accounting

Hi Frnds,
Can any body explain about difference between business area and profit center accounting .

Hi
Business area will have many profit centers. For example Vehicle is a business area in a company. Vehicle can be cars and Bikes etc. Here Vehicle is business area and Cars and Bike are profit centers. In broad Vehicle is a profit center. But as it has sub areas those are profit centers. So profit centers cannot be replaced with business area and vice versa. We can replace business area by Profit centre, only condition is that it should be in same controlling area. The business area is more like a business unit of a company. You can have multiple profit centers within a business area.
Main distinguish factor is that distribution and assessment in possible in profit center but not in business area.
One more distinction is that Business area need not be attached to any organisation structure. But profit centres can be created only under the controlling area. Business area can be across controlling area.
Business area concept is used for making stragic decisions by the management whereas the primary purpose of profit centre accounting is responsibility accounting.
http://help.sap.com/saphelp_erp2005/helpdata/en/ff/277203deea11d3b5b4006094b9b0a5/frameset.htm

Difference between business area and profit center

hi all
could you please tell me about difference between business area and
profitcenter.
thanks,
regards,
chennuri.

HI
Read below
Profit Center - The profit center view shows the various
internal areas of responsibilities. Objects such as cost
centers, materials, etc can be used for profit center
analysis. Profit center can be used to determine the
revenues, costs, and profitability for specfic areas of
responsibility.
Business Area - Business area forms an important part of
external reporting. Analysis of various segments, product
divisions, regions etc is possible using business areas.
Business Area: This is optional
This can be used cross compane codes
This is for Internal Purpose
It is not Legal Entity like Co Code
The transation entered in Business are, Debit total will
not tally with credit total
Since it is used for segment wise or area wise or line wise
this is used for internal report purpose only .
Balance Shhet and P & L stataments can be drawn on segment
wise
Profit Centre: Generally in terms of SAP or Finance the
meaning of Profit centre is to know the profitabilty.
In same manner , The managers wants to know the ROI from
their investments, obviously we nned to use the tool.
This ROI may be geographically or area wise or division
wise. P.C provided us profitablity of the particular area
for internal purpose ( Only for Internal )
Business Area is an optional entry.Whenever company wants
financial statements businessarea wise we can maintain
BAs.And also we can maintain BA as Segment Wise,Product
Wise,Geographical Location wise.
Profit center is used to know the profits of companies.PC
is also used for to know the profits as aProduct
wise,Segment wise,geographical location wise.If anything
wrong inthis answer plz correct me..
Hope this helps
Good Luck
Hari

Difference between business area and sales area

Hi
I am swetha i have one doubt
1) what is the buisiness area and what purpose we use the business area
2) what is sales area and what purpose we use the sales area
3)what is the main Difference between business area and sales area.
Regards
Swetha

Hii..
Business Areas in SAP are used to differentiate transactions originating from different points/lines/locations in business. Let me give some examples to elucidiate:-
A company (say, ABC) is a huge company and has a variety of businesses under it. Let us say that it typically operates in 3 different domains like machinery manufacturing, trading and assembling of machine parts.
There are 2 options here now -
1. Either create different company codes for the 3 business operations (which would be the easiest and require no creativity)
or
2.) Create each of these business lines into business areas (the better option).
The advantages of using the second option is:
1. You can use these business areas if other company codes require the same areas
2. The configuration is simpler as in case of company code, you would require to go through the entire configuration of creating Chart of Accounts, Fiscal Year variants, posting periods variants and so on. In the business area option, you just need to attach it to the company code and the rest of the details in Business area is attached by default from the company code you are using it in.
3. Using the options in controlling (EC-PCA, Enterprise Controlling, Profit Centre Accounting), you can even draw up Balance Sheets and PL statements for your business areas and hence this is used for management accounting in some companies (like HP, Dell, etc) when it wants to know the operating profits for different business areas/lines.
The above was an example when the company wanted to separate entries according to the lines it operates in... the other case could be when it wants to find out profitability during its operations in cities and differentiates these cities into Business
Areas...
Business Areas are not much relevant in FI but are much more relevant in CO.
Hope this clears.
What is mySAP SD?
The SAP sales and distribution is part of the logistics module that support your customers, starting from quotations, sales order and all the way towards billing the customer. It is tightly integrated with the MM and PP functional modules. It allows companies to input their customer sales price, check for open orders and forecast etc.
The most important basic functional features in the sd module are:
- Pricing                                           - Availability Check
- Credit Management                       - Material Determination
- Output Determination                     - Text Processing
- Tax Determination                          - Account Determination
Regards,
Aakash

Difference between Business Area & Profit Center Accounting

Can anybody help me out by explaining the difference between Business area and profit center? Because both the concepts are used to define a product line / function in a business,so why they are different?
Also let me know why business area concept is replaced by profit center?
Regards
Sagar

hi
PCA:
Created per Controlling Area & Company Code [System validation at Company Code Level]
Data:Manual Entry
Derivation by referred cost object
Derivation from offsetting item based on the above mentioned rule
Periodic processing:Monthly period closing program to be executed
Distribution / Assessment possible [PCA Documents are created which can be verified by the auditor]
Report showing individual and all PCA totals to match Company Code Values GL Account wise can be created
other:Consolidation at PCA level
Multiple Valuation possible for PCA at
FI Level
Consolidation Level
Material Ledger concept for PCA for parallel valuation of materials
Business area:Independent Dimension
[Can be used across company codes u2013 Manual validation required to ensure Company Code-Business Area parity]
Data: Manual Entry
Derivation from Organization structure
Derivation by referred cost object
Derivation from offsetting item based on the above mentioned rule
Periodic processing:Monthly period closing program to be executed
Distribution / Assessment NOT possible
Report showing individual and all PCA totals to match Company Code Values GL Account wise available
Others:Consolidation at BA level
Multiple Valuation not possible at BA level
Material ledger concept NOT extended to Business Area
Further development for Business Area discontinued [Note 321190]
thanks
Srilaskhmi

Difference between business area balance sheet and profit centre accounting

Hi all,
I want to know what are the differences between business area balance sheet and profit centre accounting.
Please tell the merits and demerits of both.
If, I want to get plant-wise profitability of a company then which method is more recommendable and why?
Regards,
Charu Mahawar

hi,
look to that interesting thread:
Re: Business Area Vs Profit Center
Andreas
pls reward useful answers
Thank you !

What is difference between bus.Area and plant

dear experts,
what is difference between bus.Area and plant?
thanks
Rajakarthik.

Hi
Plant and Business Area are not the same.
Business Areas are configured in FI module as per the Product lines or geographical operations basis.
Where as The plants created in the logistics (General) module are assigned to the company code. That means all transactions taking place in the plants are posted to the attached company code in SAP FI.
You can post a business area to several company codes and use it for cross-company-code reporting.
The R/3 System uses a combination of plant and division to assign the relevant business area. When you use the R/3 System to automatically draw up accounts for business areas, you can assign only one business area to a combination of plant and division. Plants and divisions can be assigned and combined in several different ways.
http://help.sap.com/saphelp_46c/helpdata/en/5d/a77d80ec1111d2bc1000105a5e5b3c/content.htm
Re: Business Area and Plant
Regards

Difference between Business system and Business service.

Hi All,
Can any one explain in detail difference between Business system and Business service.
As we commonly say, Business service is for those system which are not in our landscape.
Can any one explain in which particular scenarios we will go for Business Service.
Reg
Bapuraj

Hi Bapuraj,
Business System
Business system is a logical system, and there is an importance on physical existence of the system.Also SLD entry is required.
It is generally used for SAP applications, this is just a general prinicple followed but not mandatory.
Business Component(formerly Service)
You use a Business Component, when you do not have the System details of the the partner system to which you want to communicate. i.e. you have not configured the partner system in SLD.
Business Service is an Absract Unit with Sender and Receiver Interfaces,In this case you need to explicitly add the message interfaces while doing configuration in ID.
It is generally used for NON-SAP applications, this is just a general prinicple followed but not mandatory.
<REMOVED BY MODERATOR>
<LINKS CAN BE SEARCHED FOR BASIC QUESTIONS>
-santosh.
Edited by: Prateek Raj Srivastava on Jan 12, 2012 10:01 PM

Difference between Business Process and Workflow

Hi all,
What is the difference between Business Process and Workflow? i have googled it and I don't really understand that complicated definition? Is there any examples to illustrate the difference between the both?

Hi,
I will try to put here , my perspective of this. If somebody knows better, they can update further on this.
Business process is purely on the perspective of the users. It may or maynot have anything to do with the system. When a draw a business flow diagram, we dont take care of how each and every process is handled in the system. The best illustration is an example of authorisation.
Let me say that I create a Purchase requisition. Once it is released a PO will be created by procurement managerD
This is a business process. However if we look at the system perspective, it can be like this.
1. Create a PR.
2. Check the value of the PR
3. If value <$100,an email needs to be send to person A, if it is $100 to 300$, an email should be send to person B and if >$300, an email should be send to B and C.
4.Once it is released, an email shoudl be send to D for creating a PO on this PR.
Here not only the process, but also how the work is delegated across various entities of the process is mentioned.
There are softwards like VISIO which actually take care of the business process in the perspective of the entities involved in the process. A workflow is a moredetailed version of business process with the roles of entities clearly defined and hence configured well in the system.
The concept is workflow is mostly used in the processes of authorisations, business activity monitoring(BAM), etc.
Hope I make it little clear to you.
You can reward if my response is of some help to you

Difference Between Business Object And Class Object

Hi all,
Can any one tel me the difference between business object and class Object....
Thanks...
..Ashish

Hello Ashish
A business object is a sematic term whereas a class (object) is a technical term.
Business objects are all important objects within R/3 e.g. sales order, customer, invoice, etc.
The business objects are defined in the BOR (transaction SWO1). The have so-called "methods" like
BusinessObject.Create
BusinessObject.GetDetail
BusinessObject.Change
which are implemented (usually) by BAPIs, e.g.:
Business Object = User
User.Create => BAPI_USER_CREATE1
User.GetDetail => BAPI_USER_GET_DETAIL
CONCLUSION: Business Object >< Class (Object)
Regards
Uwe

Difference between Business Partner and Customer in ISU?

Is there any difference between business partner and customer in ISU?
if yes then wht?

Hi,
Yes Business Partner is a broad term used in ISU for various roles. A business Partner can be a Customer for company, an employee or even a vendor.
It depends on what role business partner has been given. Initially by default all Business Partners are assigned a default role "Business Partner (Gen.)". Later it can be changed to any role like Employee, Vendor, etc.
Business Partner with role "Contract Partner" is normally the end Customer which I believe you are referring to.
For more info on Business Partner, please check below link:
[Business Partner Master Data|http://help.sap.com/printdocu/core/Print46c/en/data/pdf/CABP/CABP.pdf]
Thanks.
Ravi

Difference between business service and business system in SLD

hi all,
i m very new to XI. can anybody tell me that what is the basic difference between Business Service and Business Systems?
Is it necessary to use them? and if yes then when to use what?
Thanx.
Regards,
Kunjal......

Hi Kunjal,
In SAP XI every system in your landscape with which you are interfacing is defined as Service.
The service can be your Business service or Business system.
Generally SAP systems are referred to Business system and you define them in the SLD before you import them.
The Business service is a logical name referring to any system in your landscape.
To communicate with any third party application you need to create communication channels which are associated to your service.
More about this here:
http://help.sap.com/saphelp_nw04/helpdata/en/7d/6b82cd0d1aef48ab5953524c9cc5b2/content.htm
Regards
Vijaya

Difference between business intelegence and BIEE

difference between business intelegence and Business Intelegence Enterprise Edition.

Hi,
I will try to explain.
Oracle BI Suite Enterprise Edition Plus is the Oracle BI Suite Enterprise Edition in combination with Oracle Hyperion. The difference between the Enterprise Edition and the Enterprise Edition Plus is the addition of Oracle Hyperion.
Oracle BI Suite Standard Edition One is the little brother/sister of Oracle BI Suite Enterprise Edition. Oracle BI Suite Standard Edition One is based on the same technology as Oracle BI Suite Enterprise Edition.
The Standard Edition One version aims at companies of small/medium size. As companies are growing they can easily move to the Enterprise Edition, because of the same technology basis.
Hope this helps, otherwise I advise you to contact an Oracle Sales Representative.
Cheers,
Daan Bakboord

Whats the actual difference between Business system and Business service

whats the actual difference between Business system and Business service

Business System
1) Business system is a logical system, and there is an importance on physical existence of the system.
2) Also SLD entry is required.
3)It is generally used for SAP applications, this is just a general prinicple followed but not mandatory.
4)This is defined as part of the SLD and is a physical system whose parameters are well defined.
5(Business systems refers to the physical systems, for instance the R/3 system. You define the business systems in the SLD
Business Service
1) You use a Business Service, when you do not have the System details of the the partner system to which you want to communicate. i.e. you have not configured the partner system in SLD.
2) Business Service is an Absract Unit with Sender and Receiver Interfaces,In this case you need to explicitly add the message interfaces while doing configuration in ID.
3) It is generally used for NON-SAP applications, this is just a general prinicple followed but not mandatory.
4) This is not defined as part of SLD and whose technical parameters are not completely known.
5)Business service is used when the message is not addressed to a business system. It is used mostly in B2B scenarios.
Also go through these links and threads...
http://help.sap.com/saphelp_nw2004s/helpdata/en/c7/301640033ae569e10000000a155106/frameset.htm
http://help.sap.com/saphelp_nw04/helpdata/en/14/80243b4a66ae0ce10000000a11402f/frameset.htm
Business service or Business system??
Business Service vs Business System in Integration Directory.
Best Regards

Difference between Business Partner and Customer Master repository

What is the difference between Business Partner and Customer Master repository ?
Is the Business Partner repository to be used in case CRM is also in landscape ? or Customer master repository is good enough ?
Sandesh

Hi,
If the landscape has both CRM and SAP ECC a business partner repository model should be good.
If it has ECC alone.a Customer Repository is needed.
But when there are many legacy systems which also contains master data fields, the standard business repository provided by SAP wont provide a good solution as it wont cover the legacy master fields..In this case its better to go for a customized repository and you can use the standard repository as a reference.
Thanks

Difference between business area and costcenter

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