What is profit type in SAP SRD-FIN-COR - FIN-Cost and Revenue?

SAP Term: profit type

• Component: SRD-FIN-COR

• Component Name: FIN-Cost and Revenue

• Description: A classification of profit based on the source of the data used to calculate it: Order profit is calculated from incoming orders. Invoice profit is calculated from customer invoices. Earned profit is calculated from postings in accounting.

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• Key Concepts: 
  Profit type is a characteristic used in SAP to classify cost and revenue elements. It is used to determine the profit center or cost center to which the cost or revenue element is assigned. Profit types are used to differentiate between different types of costs and revenues, such as operating costs, personnel costs, and sales revenues. 
  
  How to use it: 
  In SAP, profit type is used to assign cost and revenue elements to a profit center or cost center. This allows for more accurate reporting of costs and revenues. Profit types can be assigned to cost and revenue elements in the SAP system by entering the appropriate profit type code in the relevant field. 
  
  Tips & Tricks: 
  When assigning a profit type to a cost or revenue element, it is important to ensure that the correct profit type code is entered. This will ensure that the cost or revenue element is correctly assigned to the appropriate profit center or cost center. 
  
  Related Information: 
  The SAP component SRD-FIN-COR FIN-Cost and Revenue Accounting provides detailed information about how to use profit types in SAP. It also provides information about how to create new profit types and how to assign them to cost and revenue elements.