Business Area Vs. Profit Center Vs. Profitability Segment

What is the difference between Business Area, Profit center & Profitability Segment?

Business area is an organisational unit which corresponds to the specific business segment or area of responsibility. Identification of business area helps in segment reporting of a company in its financial statements. Business areas can be identified based on the products of the company or based on geographical area.

Profit centers are internal areas of a company that have the responsibility for achieving target profits or productivity goals.

The objective of business area is more for reporting purposes whereas profit center allows to analyse areas of responsibility and to delegate responsibility to decentralised units (eg., the various divisions within a company). Thus, profit center are basically treated as “companies within a company” and ensures effective control.

Read more

Questions for SAP FI/CO Certification

Questions for SAP FI/CO Certification (FI/CO and general knowledge only)

  1. About evolution in the world of business, we can affirmate that (Please choose the correct sentence):
    a)     [  ] The internet revolution could turn available to companies the use of ERP functionality.
    b)     [ ] The next generation of "new dimension" products appeared taking functionality out of the company, to bring value through extending the Internet Revolution.
    c)     [  ] The internet has driven to a collaborative environment where value is created through collaboration within business comunities.
    d)     [  ] In the first the companies were looking at Cost reduction and efficiency through integration of business comunities.
  2. About the definition of ERP and e-business functionalities, we can say that (Note: we can have more than one correct sentence. Please select the sentences you think they are correct):
    a)     [  ] ERP offers enterprise centric functionality (general ledger, payroll, order entry) to integrate core, internal processes.
    b)     [  ] ERP is mySAP Financials and mySAP HR.
    c)     [  ] ERP is SAP R/3, while e-business is
    d)     [  ] About Business Model, ERP can be considered as enterprise centric and e-business, as extended and collaborative.
    e)     [  ] About Architecture, ERP can be considered as an integrated system and e-business, as an integrated system and an open integration platform.
    f)      [  ] About Processes, ERP can have them integrated, core within enterprises and collaborative, beyond company boundaries.

    Read more

Condition Types

Condition Types:

>    The condition type determines the category of a condition and how it is used.
>    The calculation type and the scale base type can be controlled for each condition type.
For Example: Scale for Condition Type PROO


1 Pieces 800 Unit
10 Pieces 750 Unit
100 Pieces 700 Unit

>    Possible scale base types       Possible calculation types
Value                            Percentage from an initial value  Fixed amount
Quantity                        Amount per unit of measure
Weight                          Amount per unit of weight
Volumes                        Amount per unit of volume
Time period                   Quantity per unit of time

Read more

ABAP Training Set 8: Smartforms, ABAP Objects

Smartforms,Abap Objects,Overview of Unicode


Chapter 01 Introduction to SmartForms
Chapter 02 Global Settings
Chapter 03 Pages & Windows
Chapter 04 Basic Nodes
Chapter 05 Auxiliary Nodes
Chapter 06 Debugging SmartForm & User Defined Exceptions

Read more

ABAP Training Set 5: Data Interface

Data Interface


Chapter 01 Background Processing
Chapter 02 Application Server Files
Chapter 03  Presentation Server Files
Chapter 04 Batch Input Methods
Chapter 05  Batch Input Session
Chapter 06  Processing Batch Input Sessions
Chapter 07  Call Transaction Method
Chapter 08  Batch Input Recorder

Read more