What is the difference between business area and profit center

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K.Balakrishna

  • Jun 29th, 2006
 

Business area is where the total business is valuated as a whole

Whereas Profit centre is an area where the company/work place allows the outside agency to use its machinery for external profits (eq: A CNC machiine which can run 24 hrs a day is utilised in our company for 15 hrs and the balance 9 hrs is let out for addition to the company's profit) is known as Profit Centre. 

padala

  • Jul 17th, 2006
 

Business area is related term to FI module and Profit centre is related to CO module. One business area can have one or more profit centres.

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Y.RAMA KRISHNA

  • Oct 17th, 2006
 

Business area is gared on external accounting where as profit centers are used for internal accounting purposes

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nitin44u

  • Dec 5th, 2007
 

Business Area: If a Company deals in more than in one product e.g. One is Sugar, Other is Chemical. These are two Business area of a company.

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