Cost Center and Profit Center in SAP: What is the Difference?

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Profit Center in SAP is an organizational unit of SAP Controlling for internal controlling. It helps organizations to manage costs and revenues. Skiptocontent WhatisCostCenterinSAP? CostCenterinSAPisacomponentinwhichthecostsoccurinsideanorganization.Itisanorganizationalunitwithinacontrollingareawhichrepresentslocationswherecostsoccur.Ithelpstocapturethecostsofanorganization.Itdoesnotdirectlygeneraterevenuebutincursadditionalexpensestooperate. WhatisProfitCenterinSAP? ProfitCenterinSAPisanorganizationalunitofSAPControllingforinternalcontrolling.Ithelpsorganizationstomanagecostsandrevenues.Italsoallowsorganizationstoevaluateaspecificunitwithinthecompany.Itevaluatestheprofitandlossofindividualsaswellasindependentareasofanorganization. Next,wewillcompareCostCentervsProfitCentervsInternalOrder. Let’squicklyseethedifferencebetweenCostCentreandProfitCentre: ProfitCenter: ProfitcenterisanorganizationalunitinAccountingthatreflectsamanagement-orientedstructureoftheorganizationforthepurposeofinternalcontrol. ProfitCenterAccountingevaluatestheprofitorlossofindividual,independentareaswithinanorganization. Theseareasareresponsiblefortheircostsandrevenues. CostCenter: SAPCostCenteristheorganizationalunitwithinacontrollingareathatrepresentsalocationwherecostsoccur. Organizationaldivisionscanbedoneonthebasisoffunctional,settlement-related,activity-related,region/section/departmentrelated,and/orresponsibility-related,tomonitoractualandplanfigurestandpointswithinCostCenterHierarchy. Wherecostiscaptured. InternalOrder: Aninternalorderisusedtoaccumulatecostforaspecificprojectortaskforaspecifictimeperiod. Aninternalorderisthereforeusedforashortperiodwithaspecificdeadline. YouMightLike: HowtocreateanewCOSTCENTER:SAPKS01 SAPProfitCenterTutorial:Create,Group,Posting&Planning CreationOfProfitCenterusingStandardHierarchyinSAP HowtoassignCostCenterstoProfitCenterinSAP SAPCO(Controlling)ModuleTrainingTutorial Postnavigation ReportaBug Previous Prev Scrolltotop ToggleMenuClose Searchfor: Search

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