Profit Center Business Units
A profit center business unit is a part of a company that you treat as a separate business. Your organization calculates the profits and losses for this profit center separately from other parts of the organization.
A profit center business unit represents a portion of a legal entity that's tracked for profitability, revenue, and costs. You can set up a profit center to have trade agreements with other profit centers for the following business flows:
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Global procurement
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Intercompany drop shipment
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Inter-organization transfer of inventory
When defining inventory organizations, you must specify a profit center business unit to generate intercompany trade transactions for various business flows. If you don't associate a profit center business unit to an inventory organization, it may result in trade transaction errors during cost processing.