Difference between Cost center and profit center

I need to know what the difference is between a cost center and a profit center eg. A work center has both a cost center and a profit center. What do they collect for that particular work center.
Thanks

hi tefo
differenc is whatever the cost involved will be collected both to the cost center and profit center, when we settle the order it will be settled in the cost element for cost center. the cost will be reflected in profit center which is assinged to the particular cost center.in profit center you can cpature revenue also which is used to map the profit loss for the concern, where as cost center will only capture the expenses
regards
thyagarajan

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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

Cost Center and Profit Center Planning

Hi,
I have one Co issue. Pls Suggest me the wiseful solution.
Cost Center and Profit Center Planning.
For F-2008 Planning data they have updated in the month of Aug, 07 for Profit and Loss Items and they have revised the plan data of some cost elements in the month of oct, 2007 (say 5% Increas). when comparing the cost center report to profit center report, both are not matching. the reason when i see and reconcile the document nos and values in between cost center and profit center reports i found out that there are some documents are missing in the profit center report.
wherever plan data had revised e.g for cost element Salaries they have updated 100000 Planning cost in the month of Aug, 07. In the month of Oct, 07 increased 5% i.e.5000. In cost center line items details i found 2 documents for Rs.100000/- and Rs.5000/- But in Profit Center Line Items i am getting only Rs.5000/- Value Document.
Note. As and when KP06 Plan data has been updated Profit Center line items are generating. It is not necessary to run any programme inorder to transfer Plan Data from cost center to profit center.
Observations From My Side:-
I tried to run the transaction code 1ke0. i have selected the cost object is Cost Center, version and had given Cost Center Parameter in development and quality clients and executed the same.By this time already existing data either deleting/ riversing and creating new documents fully except manually changed data in profit center through 7ke1.
My Question is
1.Upto what extent it will work.
2.will it be possible to transfer data from cost center to profit center only missing documents which are available in cost center, without disturbing of existing data in profit center.
3.suppose if i done this activity, there are some data which was already transferred from other cost objects like internatl orders & wbs elements to Profit Center. will the data get disturbed (deleted/riversed).
Pls suggest me the wiseful way to solve the

Hi
Try This
BAPI_COSTCENTER_CREATEMULTIPLE
BAPI_COSTCENTERGROUP_CREATE
BAPI_PROFITCENTER_CREATE
BAPI_PROFITCENTERGRP_CREATE.
Regards,
V.balaji
Reward if usefull

Cost center and profit center details

Hi All
Is there any function module or BAPI to obtain cost center and profit center details
for a GL account. Actually I am obtaining the carry forward balance for a
fiscal year from the table GLT0 but I am not getting the corresponding profit center
and cost center details.
Please suggest a way forward!
Regards
Ankit

Hi,
If you are getting data from GLT0 table, using the Account number go to SKA1/SKB1 tables and get the CostCenter(KOSTL) and Profit Center(PRCTR). If you want to get details about CostCenter, its master table is CSKS and master table for Profit Center is CEPC. you can get required info from these tables.
thanks,
sksingh

Cost center and profit center linked to GL account

Hi All
I am obtaining the carry forward balance for the fiscal year from the table
GLT0 but I also need the cost center and profit center details for the GL account,
which I am unable to get from either GLT0 or GLTPC or GLT1 tables.
Is there any other way out. Please suggest!
Regards
Ankit

Hi,
Hope OKB9-Account Assignment will resolve this issue.
There you have the assignments.
Regards
A
Assign points if useful

Table name having relationship between Business area and Profit Center

Hi guys,
Can you tell me the table name showing the relationship between Business area and Profit Center in fb60 transaction.
thnx
hema

HI.
BSEE u2013GSBER Business area.
BSID-PRCTR Profit center
Regards.
jay

Cost Center, Work Center and Profit Center

Hi ALL,
Can any one please explain me the concept of Cost Center, Work Center and Profit Center.
And where and when do I assign the cost center???
Amit

Hi Check the following "
Cost centers represent areas of responsibility where costs are incurred or where responsibility for costs may be assigned. They represent the smallest unit of responsibility within the organizational structure of an enterprise.
A cost center can be pictured as a cost bucket such as a department, product line, production stage or geographical area.
An unlimited number of cost centers may be created.
All cost centers within on controlling area have to be assigned to a cost center hierarchy (standard hierarchy).
Costs originally posted to one cost center may be distributed and assessed to one or more other cost centers using allocations.
How are costs assigned/posted to a cost center?
External financial accounting documents created in FI, AM or MM that post to a G/L expense account can be configured to require a cost center assignment be entered at the time of transaction entry. The system automatically creates a parallel CO document that posts to the indicated cost center.
Cost elements master records can be configured to be posted to a certain cost center (automatic account assignment).
In addition, other non-financial activity (i.e., direct labor hours) may be posted directly to cost centers from within CO or via other modules such as PP or HR
chandra

Transporting Master data - New GLs,Cost Center and profit Center.

Dear Friends,
1. I have to create new GLs in Dev, Now i have to transport the new GL to Quality and Production. As per my knowledge, Master data has to created in DEV,Quality and Production.
please suggest, is there any t.code where i can transport GL from Dev to quality and production.
2. when Creation of the site, New Cost center,Profit center, Changes to standard hierarchy both in cost center and profit center hierarchy has to done in dev,quality and production manually.
Any suggestions where i can do only in dev and transport to quality and production.
3. After creating new cost center and profit center, i have to go to okb9, select the co.code,cost element and insert the new cost center and profit center in every cost element. This takes almost one hour.
Please suggest how to reduce this manually process.
All the help will be greatly appreciated.
Regards
Sridhar Reddy

Hi ,
Master data is to be created in diffrent clients as it is a non transportable object .
So in case of GL , cost centers you will have to again re run the LSMW which you had created for DEV .
Secondly OKB9 is a transportable object , so i dont feel there should be an issue in adding it to a transportable object .
In case of adding the values of tables in a request what you can do is create a request , go to SE01 open the request in change mode in the objects enter TABU and enter on the relevant entries that you want to transport .
But again one has to be very clear on what all table entries are to be transported , like SKA1 , SKB1 , SKAT etc. looking at the complexities and moving ahead with the standard way it is advisable to re run the LSMW in QUA and PRD .
Hope this helps .
Regards ,
Dewang T.

Responsible Cost Center and Profit Center in a Maintenance Order

Dears,
I would like to know what's the real influence that responsible cost center and profit center located in the
"add. data" tab in maintenance order has when I confirm a labor (through the IW41) and settlement an maintenance order.
Best Regards,
D. Quint.

D Quintal,
When you perform a confirmation (IW41) the cost centre assigned to the work centre is credited, and the order debited.
This work centre cost centre may be the same cost centre as the responsible cost centre in the order...
PeteA

Changing cost center and profit center in already exsisting PR and PO

Hi friends,
In my ckient place we have created PR with account assignments- K,C,D,A and saved the pr. We are creating PO woth respect PR. then we did goods reciept also and some went upto to the stage of invoice verification. now my client likes to change the cost center and profit center they are using currently. they are interested to create new profit center and cost center.will this chnage will affect the already exsisting open PO(purchasing process not yet completed).
Is it possible to change the cost center and profit center in already exsisting and created PO and purchase request. will sap allow this.what can we do.please advice.
Thanks you in advance.
Regards,
willaim

William,
Once you will post the GR or Invoice system will not allow to change the account assignment data like Cost Center or profit center.
This is a standard SAP functionality

Change the Accounting document fields cost center and profit center

Dear Experts,
User has posted document with wrong profit center
For that we subjected that he can go to the profit center actual posting T.Code 9ke0 but with that he can only change the Profit center document with that there is no accounting side updating
I have tried with Document Change Rules, Line Item for fields cost center and profit center in that while configuring I did not get any error message,
But in the document I am unable to changing the same fields cost center and profit center
Can any body please guide me to resolve the issue?
Essentially I want to change the Accounting document fields cost center and profit center
Thanks in Advance,
Wiswanath

Hello,
Once the documents are posted in FI module, the system doesn't allow anybody to change the cost objects (cost center, profit center, internal order). The only fields you can change through FB02 transaction are the Line item text (BSEG-SGTXT) and the assignment (BSEG-ZUONR).
If you want to get a change to the cost object to be reflected from FI to CO, you should reverse the FI documents with wrong cost objects and post new documents with correct cost center, profit center.
Hope it helps you.
Cheers,
Daniel.

Cost Center and Profit Center in NewGL

Dear all,
We defined new customer fileld in the NewGL for spliting the document number. Everything works fine! We have only one problem.
Afer posting a new document we see the cost center and Profit center in the classic GL. When we change to NewGL is this fields empty. Is there any customizing to do here?
Thank you!

Thank you very much for the information. I allready had inserts this fields. Problem here is
we have a new customer field in NewGL ZZPMS. This field is not availible in table FAGL_FIELD_MOVE. Therefore I get a dump in RGIMOVV0.
Now my question: This customizing is only to assign a costomer field ZZPMS to a profit center or a cost center, ect. . This mean, I will get in the NewGL the value of my ZZPMS in the profit center and cost center incase of the original values. Is this right?
Thank you

Profit center and profit center group wise profit and loss account

Hi
My name is swetha i have one doubt in ecc 6 version. i need profit & loss account profit center and profit center group wise is it available in sap ecc 6 . Could u please details such kind of informatiion how we will get the p&l report in sap profit center group and profit center with transaction code.
Regards
Swetha

Hi
Please use report
S_ALR_87009712 - Profit Center List: Plan/Actual
Here you can enter the Profit Center Group for which you need the P&L .
Also create a account group which should include all your PL accounts and use the same in the selection of the report.
There are other reports you can try on the same concept.
S_ALR_87009712 - Profit Center List: Plan/Actual
S_ALR_87009726 - Profit Center Group: Plan/Actual/Variance by Origin
S_ALR_87009734 - Profit Center Group: Plan/Plan/Variance
S_ALR_87009717 - Profit Center Group: Quarterly Comparison of Actual Data
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What are the differences between Cost Org and Inventory Org

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Can someone help me understand the differences between cost orgranization and Inventory Organization?
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-Amith.

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Difference between Cost center and profit center

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