Unlike CO-PA where the focus is on external market segments’ profitability, ‘Profit Center Accounting’ (EC-PCA) focuses on profitability of internal areas (profit centers) of the enterprise. Profit center accounting is used to draw internal balance sheets and profit & loss statements. You may use EC-PCA in place of business area accounting.
Both CO-PA and EC-PCA serve different purposes, and are not mutually exclusive. You may need them both in your organization.
