Account-Based Profit Center Accounting

Definition

"Account-based Profit Center Accounting" represents the profit center’s profits in the form of accounts and cost elements. This makes it possible to reconcile the data directly with Financial Accounting. Profits are calculated according to the period accounting method, in which the activities of the profit center -- revenues, changes in stock, capitalized internal activities -- are set off against the total costs for the period. If the function area is specified in the operative systems, it is also possible to display profits according to the cost-of-sales method.

Selection criteria

If you want to display profits according to general ledger accounts and thus adhere to the formal structure of financial accounting, you should use Profit Center Accounting. This lets you use the standard reports and reconcile the data in external and internal accounting.