Profitability analysis lets you analyze the profitability of segments of your market according to products, customers, regions, division. It provides your sales, marketing, planning and management organizations with decision support from a market oriented view point.

Profit center accounting lets you analyze profit and loss for profit centers. It makes it possible to evaluate different areas or units within your company. Profit center can be structured according to region, plants, functions or products (product ranges).

If you like this post, you may as well like these too:

1. Functionality of the Profitability Analysis Module The operating Concern is the highest node in Profitability Analysis. The operating concern is assigned to the Controlling Area. Within the operating concern all the transactions of Profitability Analysis...
2. Purpose of Creating a Profit Center? The basic purpose of creating a Profit Center is to analyse the revenues and costs for a particular product line, or a plant or a business unit. Though you...
3. Cost and Revenue Flow To The Profit Center The profit center is stored in the cost center this way the costs flow to the profit center. The profit center is also stored in material master. This way...
4. Cost and Revenue Flow To The Profit Center The profit center is stored in the cost center this way the costs flow to the profit center. The profit center is also stored in material master. This way...
5. Account Based Profitability Analysis and Costing Based Profitability Analysis Differences Account based Profitability analysis is a form of Profitability analysis (PA) that uses accounts as its base and has an account based approach. It uses costs and revenue...