SAP

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.

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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 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.

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