Profit Center Accounting (PCA) in SAP S/4HANA Financials is a tool to evaluate specific areas or units in your organization. Structure profit centers by region (such as branches or plants), function (such as production or sales), or product (such as product groups or divisions) to analyze internal profit and loss for profit centers.
Typical questions in Profit Center Accounting are for example:
- Contribution of an organizational unit: What is the operating profit of a profit center?
- Return on investment: Which fixed asset value is assigned to a profit center?
- Cost management: Which areas of responsibility exceeded their plan during the last month?
- Management of internal sales and activities: Which goods and services were provided or sold in the enterprise?
The online document splitting function in financial accounting provides a balance sheet reporting on profit center level. To meet legal segment accounting requirements (based on International Financial Reporting Standards (IFRS) or United States (US) Generally Accepted Accounting Principles (GAAP), for example), assign the segment accounting object to profit centers in SAP S/4HANA.
According to most recent theories, you can show the results of profit centers as profit and loss statements and balance sheets in the Financial Accounting.