Liquid impinging jet on the bottom of the annular cavity is the typical case in the process industry. The jet can impact on the bottom center or its peripheral section. The profiled annular cylindrical cavity with the installed electricity heater source investigated in this paper. Within the profiled cavity generate thermal contact irreversibility and liquid drag irreversibility. By analytical modeling and experimental verification a valid model of the entropy generation established for both states. The results show that the total entropy between the liquid and bottom is many times greater for the case of the central jet impingement. Within the annular vertical walls are locations maximum or minimum of entropy. The effectiveness of the liquid heating for the central impact is greater in the peripheral impact of liquid. The method and the results got are a basis for optimizing  profiled cavity at various optimization geometry parameters. The optimal annular cavity geometry exists for which the balance between thermal irreversibility and liquid drag irreversibility leads to the total minimum rate of entropy generation for an annular cavity.