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 →
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Questions for SAP FI/CO Certification (FI/CO and general knowledge only)
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.
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 mySAP.com.
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 →
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This material describes how to configure and implement cost element accounting,cost center accounting, profit center accounting, and internal order accounting.
Product costing flow overview
Product costing flow for discrete manufacturing w/o PA
Product costing flow for discrete manufacturing with PA
Product costing flow for repetitive manufacturing with PA
Product costing flow for make-to-order production with valuated stock and PA
Product costing flow for make-to-order production with PA
Product costing flow for assemble-to-order production with PA
Product costing flow for engineer-to-order with PA Read more →
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This guide aims SAP Users to understand how Product Costing is used to collect and allocate costs in manufacturing environment. It explains what you need to know to perform these tasks and helps you to assess the most appropriate costing method for your situation.
Contents:
Product Costing Flow for Discrete Manufacturing Without Profitability Analysis
Product Costing Flow for Discrete Manufacturing with Profitability Analysis
Product Costing Flow for Make-to-Order Production with Valuated Stock and Profitability Analysis
Product Costing Flow for Make-to-Order Production with Profitability Analysis
Product Costing Flow for Assemble-to-Order Production with Profitability Analysis
Product Costing Flow for Repetitive Manufacturing with Profitability Analysis
Product Costing Flow for Engineer-to-Order Production with Profitability AnalysisRead more →
Introduction to Product Cost Planning
Reference and Simulation Costing
Material Costing Without Quantity Structure
Preparing for Product Costing
Material Costing With Quantity Structure
Costing Run
Other Costing Functions Read more →
What makes this document valuable ? If you are studying for SAP FI Certification, you know TFIN 50 & TFIN 52 materials are the only required documents for study. These two materials are more than enough and you will not need any other supporting material, except this :). And the following document outlines the most important points from these books, and it is a very good summarise. A must for all whom prepare for SAP FI Certification.
