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What is the Purpose of a Profit Center in SAP?

Updated May 19, 2018

Hello Experts,

May I know that what is the purpose of a profit centre in SAP? And What does profit centre actually means in cost accounting?

Kindly share your views on it, So i can proceed further.

Thanks in advance.

Comments

07 Sep 2015 11:17 am Romil Tripathi Helpful Answer

For every distinct location within the company code we treated as profit center. .
Company
↓
Co.code
↓
Segment (business area)
↓
Profit center

07 Sep 2015 11:17 am Chandan Singh Parihar Helpful Answer

Profit Center is a sub unit of a co code which is equally responsible for cost and revenue of a unit, we can draw the profitability of a business unit under co code through profit center concept.

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