What is profit center in SAP PLM-PLC - Product Lifecycle Costing?

SAP Term: profit center

• Component: PLM-PLC

• Component Name: Product Lifecycle Costing

• Description: An organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control.

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• Key Concepts: 
  A profit center is a unit within an organization that is responsible for its own profits and losses. It is a way of measuring the performance of a particular area of the business. In SAP Product Lifecycle Costing (PLM-PLC), a profit center is used to track the costs associated with a product's lifecycle, from development to production to sales. 
  
  How to use it: 
  In SAP PLM-PLC, profit centers are used to track the costs associated with a product's lifecycle. This includes costs such as research and development, production, marketing, and sales. The profit center can be used to analyze the profitability of each stage of the product's lifecycle and identify areas where costs can be reduced or profits increased. 
  
  Tips & Tricks: 
  When setting up a profit center in SAP PLM-PLC, it is important to ensure that all relevant costs are included in the calculation. This includes both direct and indirect costs such as labor, materials, overhead, and marketing expenses. Additionally, it is important to ensure that all relevant revenue sources are included in the calculation as well. 
  
  Related Information: 
  Profit centers are just one of many tools available in SAP PLM-PLC for tracking and analyzing product lifecycle costs. Other tools include cost centers, cost objects, and cost elements. Additionally, SAP PLM-PLC also provides reporting capabilities for analyzing product lifecycle costs over time.