1. SAP Glossary
  2. SAP Business One
  3. zero profit center


What is zero profit center in SAP SBO - SAP Business One?


SAP Term: zero profit center

  • Component: SBO

  • Component Name: SAP Business One

  • Description: A special profit center to which indirect costs or revenues are written. If costs and revenues cannot be allocated because no distribution key is available when they are incurred, they can be assigned to the zero profit center and allocated later based on a new distribution rule.


Smart SAP Assistant

  • Key Concepts: 
    A zero profit center is a type of profit center in SAP Business One (SBO) that does not generate any profits or losses. It is used to track the costs associated with a particular activity or project, such as the cost of materials or labor. The zero profit center is not used to calculate the overall profitability of the business. 
    
    How to use it: 
    In SBO, a zero profit center can be created by selecting “Create Profit Center” from the menu and then selecting “Zero Profit Center” from the drop-down list. Once created, it can be used to track costs associated with a particular activity or project. The costs can then be allocated to other profit centers in order to accurately calculate the overall profitability of the business. 
    
    Tips & Tricks: 
    When creating a zero profit center, it is important to ensure that all costs associated with the activity or project are accurately tracked and allocated to the correct profit centers. This will help ensure that the overall profitability of the business is accurately calculated. 
    
    Related Information: 
    For more information on creating and using zero profit centers in SBO, please refer to SAP’s official documentation on the topic.
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