what is the PC of Inventory ?

What is the profit center of Inventory in SAP?

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  • In SAP, the Profit Center of Inventory is the Profit Center to which the Inventory related transactions are assigned. It represents the segment of the organization responsible for managing the inventory and the associated costs and revenues.

    The Profit Center of Inventory can be assigned to various inventory transactions such as Goods Receipts, Goods Issues, and Stock Transfers. This allows for better tracking and analysis of inventory costs and revenues by profit center.

    In SAP, the Profit Center of Inventory can be set up by assigning a profit center to the valuation area in the Material Ledger. This ensures that inventory-related transactions are automatically assigned to the corresponding profit center. The profit center can also be assigned manually while creating or editing a material master record.

    Krowd Darden