Profit Center (SAP Business One)

A business unit or department that performs a specific business function, e.g. the manufacture of specific products or the provision of a specific service. The profit centre can represent a business area or a department and is used to consolidate the expenses and income resulting from the ongoing activities of a specific organisational unit.

On Profit centre collects the Income and expenses of a specific business unit in order to Profit or loss to calculate. It is a Central instrument for monitoring the Profitability of individual divisions.

2nd function

Cost allocation: Direct and indirect costs are allocated to profit centres in order to Profitability of individual areas.
Revenue allocation: Revenues are also allocated to the profit centres in order to Financial performance to measure.
Responsibility: Create profit centre Clear responsibilities for the financial performance within the company.
Analysis: Profit centres enable the Detailed analysis of profitability and the recognition of Potential for improvement.

3. relationship to cost centres and distribution rules

In earlier versions of SAP Business One, profit centres were used as cost centers labelled. Today cost centers used to collect costs and revenues.
Distribution rules: A distribution rule defines how Direct and indirect costs or revenues are distributed to one or more profit centres.
Zero profit centre: A special profit centre, the Unallocated costs or revenues if no distribution key is available. These amounts can be rebooked later using a new distribution rule.

4 Application and setup

Application

Cost accounting: Profit centres are a important instrument of cost accountingto sort the financial results by department or business area.
Reporting: Profit centre reports offer a Detailed analysis of costs and revenues per area.
Flexibility: Profit centres can be used for any business units can be set up, e.g. for regional locations or product groups.

Furnishings

Profit centres are defined under Finance > Cost accounting > Cost centres defined.
Code and name: Each profit centre has a unique code and name.
Dimension: Profit centres can be Dimension be assigned.
Validity period: A period can be defined in which the profit centre may be used in documents.

5. reports and analysis

Profit centre reports offer a Detailed overview of the financial situation of individual divisions:

Cost centre reports: Analyse the Costs and revenues per profit centre.
Profit centre reports: Show the Profit and loss situation by department or business unit.
These reports help to Performance of individual areas and make well-founded decisions.

Versino Financial Suite

the Versino Financial Suite for SAP Business One supports the management of profit centres by providing real-time overviews and detailed profit and loss analyses. Drill-down functions help to track postings down to individual documents. Set-up takes place directly in the SAP finance module, including account allocation and distribution rules. The Versino Financial Suite thus makes profit centre management more transparent, efficient and audit-proof - particularly helpful for medium-sized companies.