. We feed amounts (either Debit or Credit) to the Profit Centers through Distribution Rules only. The amounts can be feed through any account of any type (Assets, Liability, Expenditure, etc.). The Debit amounts are treated as Expenses and the Credit amounts are treated as Revenues, in Profit Center Report. In other reports/statements (Trial Balance, P/L Statement, etc.) the accounts will be selected as per the selected Distribution Rule and the reports/statements basic criteria.
2. Each Profit Center has at least one Distribution Rule, which is automatically created just after creation of the concerned Profit Center. This automatically created Distribution Rule is for 100% Direct Debit to its own Profit Center.
3. Direct Debit (opposite is Indirect Debit) nature of a Distribution Rule can be changed any time and the effect is only concerned with the Profit Center Report.
4. We can select only the Profit Centers (not the Distribution Rules) in the Profit Center Report selection criteria, although the report will show the breakups as per the Distribution Rules involved in the concerned Profit Center. On the other hand in other reports/statements (Trial Balance, P/L Statement, etc.) we can select only the Distribution Rules, i.e. totally opposite to Profit Center Report selection criteria.
5. We can link (in Chart of Accounts) the Distribution Rules with the Revenues and Expenditure Accounts type only.
6. The Distribution Rule assignment in the Journal Entries (automatic or manual) can be changed any time, and the concerned reports will be updated accordingly.
7. Dimensions are to separate/classify profit centers into different individual groups. A Profit Center Code is uniquely identified throughout all the Dimensions.
8. Multiple Profit Center selected from the different Dimensions in a report / statement (Trial Balance, P/L Statement, etc.) does not give any result in SAP B1 2007B PL7.
Comparison between Profit Center and Projects :
1. Profit Center can have more than one Distribution Rule, thats why the amounts are assigned (to the Profit Centers) only through any Distribution Rule of the concerned Profit Center. On other hand Project has only one distribution rule, thats why the amounts are directly assigned to the projects.
2. Profit Center has a special report named Profit Center Report besides the selection criteria of other reports / statements (Trial Balance, P/L Statement, etc.). Project has not any kind of special report, it is only available in the selection criteria of the reports / statements (Trial Balance, P/L Statement, etc.).
3. For Profit Center In Balance Sheet selection criteria it is not available. Projects also not available in Balance Sheet selection criteria.
4. In Profit Center We can link (in Chart of Accounts) the Distribution Rules with the Revenues and Expenditure type Account only. But We can link Projects with any type of Account.
5. We cannot directly link any Profit Center to any Accounts; we can link only through any Distribution Rules of the concerned Profit Center. But We can directly link the Projects to the Accounts.
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