Finance & Controlling
What is Profit Center?
An organizational unit for internal reporting of profit and, in S/4HANA, balance sheet items by area of responsibility.
Profit centers are derived from cost centers, materials, and other objects, and drive segment reporting. In S/4HANA, profit center accounting is part of the Universal Journal. Derivation rules must be tested for every posting type.
Related transaction codes
Related terms
Segment
An organizational characteristic used for segment reporting under IFRS 8 and US GAAP, usually derived from the profit center.
Document Splitting
A General Ledger function that splits line items by characteristics such as profit center or segment to produce balanced statements per dimension.
Cost Center
A CO object representing an organizational area where costs are incurred, such as a department.
Controlling Area
The CO organizational unit within which cost accounting is performed; one or more company codes are assigned to it.
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