Why Do We Create Profit Center?
The main aim of creating a Profit Center in SAP CO is to analyze the cost of a product line or a business unit.
You can also generate P&L accounts according to a Profit Center and also generate balance sheets, however a Profit Center should only be used for internal reporting purpose.
The key components of a profit center include – name of the profit center, the controlling area under which it is assigned, time period, person responsible for the profit center, standard hierarchy, etc.
How to Create a Profit Center?
Use the T-code KE51 or go to Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center → Individual Processing → Create.
