The document splitting is active in your company, at the same time, the "zero balance" for profit center is activated in your doc split characteristics. In order to balance the profit center in General View, it creates another line item for balancing it which is the zero balancing account or split the cash account according to profit center assignment.
For some cases, they are split equally that is why it is best that you assign the profit center in the cash account upfront and create line item for each payment with different profit center assignment. What is the customizing for that? Not what you're looking for? Search community questions. This question has been deleted. This question has been undeleted. Former Member. Posted on Jul 05, at AM 1. Hello dear all, I have an issue in Intra-company process. Thank you in advance.
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Related questions. Sort by: Votes Newest Oldest. This answer has been deleted. This answer has been undeleted. Posted on Jul 05, at AM. Alert Moderator. You already have an active moderator alert for this content.Cost Center and Profit Center Creation and Postings
Jul 05, at AM. Hi, Thanks for the answer, but for me this is still not clear for me. Sometimes system creates 4 lines and sometimes 2. Posted on Jul 05, at PM. Regards, Alok.The primary objective of Profit Center Accounting is to determine the net profits for each area of responsibility. To achieve this goal, all costs and revenue must be allocated to each profit center.
The assignment of balance sheet items to profit centers enables the extension of the profit center to an investment center and its assumption of responsibility for the tied in assets. This also enables the determination of controlling figures, such as Cash Flow, Working Capital, Return on Investment, and so forth.
Profit center consolidation also requires that costs and revenue and any balance sheet changes stemming from group-internal business transactions be assigned with the partner profit center. Profit Center Accounting reflects the portion of transaction data from transaction applications that is relevant. The profit center is not an independent coding object in the SAP system. Instead, the system derives the profit center from the original, posted coding objects.
You make settings in the Implementation Guide for Profit Center Accounting to achieve this derivation. Two essential settings are mentioned here:. You assign all objects that contain profit-related data to a profit center - for example orders, cost centers, controlling areas, etc. For example, you could include the balance sheet items for group-internal receivables and payables in Profit Center Accounting and in profit center consolidation.
However, you can transfer these balance sheet items to Profit Center Accounting only periodically, usually at the end of the month. Using the relevant FI documents, this program determines which profit centers and partner profit centers are to assume the receivables and payables. The FI document divides the revenues by profit centers; however, the customer or reconciliation account Receivables is not divided up. For more information about profit center determination and assignments, see the documentation on Profit Center Accounting in the SAP Library, specifically the following sections:.
In material acquisition and sales, the system is able to derive the partner profit center automatically if the supplying or receiving partner uses the corresponding SAP applications on the same system and the same client. If the partner assignment cannot be derived automatically because of different systems or clients, you can use derivation rules to determine the partner profit center.
You can have the partner profit center be determined from the vendor number, customer number, material number, partner company, sender profit center, or from a combination of these assignments.I created some new cost centers, which I assigned a newly created profit center.
I've only discovered that we need to change the profit center assignment. I was not able to change the profit center assignment.
I want to change the Profit Center assignment to PF Does anyone know how this is done? Is there some sort of procedure or T-Code that I need to use? Thanks in advance for your help.
Profit center determination
Is that cost center have balances? Then you can change the assignment by using KSH2. As sitiariyani said, the balance needs to be zero. Yes, KS02 is the cost center master record change transaction. Generally, the profit center cannot be changed unless therre has been NO activity for the fiscal year.
Note: activity can include posting of actual OR plan. SAP does allow change to profit center for non-zero cost centers in certain cases. See the error message that is presented for information on how to make the change, when justified and approved by appropriate company management.
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Something went wrong on our end. Please try again later. Go to Cost center Master data ks02 and change the profit center assignment. Thanks Mohammed Manan. Mohammed manan. Gary McSorley. August 10, PM. Sign In to Post a Comment. Sign In. Hide Comments View Comments. Looking for more? Search the archive of solutions and how-to's. Ask a new question to a community of peers. Hybrid Transactional and Analytics Processing with Db2.In practice, we will have only one Co Code assigned to every Profit Center.
How to make it unassigned during the creation of Profit Center instead of unassigned manually during creation or unassigning in KE56 Mass Change which is really time consuming. Please suggest Thanks! Do you think that a substitution rule posting to a single profit center for selected company codes only and to a different unused common profit center for other company codes?
I have checked in the substitution rule setting, there is none of it that apply for Profit Center Master Data, what I have find is only apply to sales order creation.
Just a thought- Profit center is an organizational structure that does not change or gets created often. I am not sure how unchecking the assignment during creation of profit center is such a huge task.
Hello KE56 is the best way to do. You can select the columns where you do not want to have a change and the the lines and pressing the button for unassigning. It is as easy as it is. Substitution is just for postings beside order master data.
Therefore, it would not be a help here. Enterprise Software. Tech Sign In Page.
Forgot Password? Don't have an account? Sign up. Follow Tech Sign In Page. Hi Do you think that a substitution rule posting to a single profit center for selected company codes only and to a different unused common profit center for other company codes?
Regards VidhyaDhar. Vidhya Dhar. March 02, AM. Something went wrong on our end.
Please try again later. Hi VidhyaDhar, I have checked in the substitution rule setting, there is none of it that apply for Profit Center Master Data, what I have find is only apply to sales order creation. March 03, AM. Sridhar Shrinivasan.
Best wishes Gany. March 03, PM. Sign In to Post a Comment. Sign In. Hide Comments View Comments. Looking for more? Search the archive of solutions and how-to's. Ask a new question to a community of peers. Hybrid Transactional and Analytics Processing with Db2.Profit center is an organization unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control. In a company we have different plants and each plants are responsible for the product produced or the services they render.
If you want the company be divided into different responsibility areas based on plants then each plant should be created as a profit center. This allows you to analyze areas of responsibility and delegate responsibility to decentralized units.
The profit center can be created with reference to an existing master data. The reference master data can be from the same controlling area or a different controlling area. To copy a profit center, put the name of reference profit center and controlling area under tab "copy from" in transaction code KE You need to firstly set the controlling area. To reset the current controlling area, please use transaction code OKKS. While creating a profit center, you need to assign it to the right company code and profit center group.
To allow posting to a profit center, you need to activate it by pressing the Activate button which is on the top of the creation screen. How to create profit center from the maintenance screen of PCA standard hierarchy creation. PCA standard hierarchy is a tree structure that contains the entire profit center and groups used under one controlling area. To create a profit center, you need click on the create option and click on profit center by having the cursor on a group under which you want to create it.
Save it and then activate it. You may want to group all profit centers related to a company code for reporting purpose. In standard hierarchy you have created your entire profit center for different company codes assigned to controlling area.
The assignment does not give you the desired result. ERP Financials. Browse pages. A t tachments 0 Page History. Jira links. Created by Miya Wang on Aug 03, Example In a company we have different plants and each plants are responsible for the product produced or the services they render. How to create profit center from the maintenance screen of PCA standard hierarchy creation PCA standard hierarchy is a tree structure that contains the entire profit center and groups used under one controlling area.
How to create PCA group for reporting You may want to group all profit centers related to a company code for reporting purpose. By using "lower level" button, you can assign groups to the lowest level of another group, which are called sub groups. Selecting a PCA group or sub group, click on "profit center" tab to get assigned the profit center masters.
No labels. Powered by Atlassian Confluence 6.This would be a good opportunity to revamp and re-engineer a few of their processes and trim down some extra fat around the master data and other objects. Hence, I thought a rehash on this subject might be helpful in the current context; especially for those who have not got an opportunity to work on Document split functionality in New GL.
Configuring document split in a new implementation should not be very complicated. I shall also briefly cover on some reporting options. We could see the Segment is assigned to a PC. One of the general concerns could be, how to assign Balance sheet accounts not related to Recon accounts like Debtors, Creditors, Assets etc. Examples like Equity, Cash and Bank Management related accounts.
The assignment is at Company code level. With Document split rules in place for Profit Center and Segments things happen in real-time. The screen print below is one such sample. The active and passive rules help derive these. For those who are new to document split, the link here might be useful to catch up with the functionality. More Fiori based reports can be developed for business specific needs. We can see how PCA would be an effective way to get the balanced financial statements.
Document split, zero balancing account etc. Also, the PC Segment data gets balanced automatically. Thus, we can safely bet on PCA. However, for entities that have special reasons or other business benefits with BA, they can continue to do so.
Profit Center – Assignment/Removal of Company code and Activation
The document split functionality supports Business Area very much. I believe every some detail shared might be helpful in decision making. Thanks for this informative post. We are having one work center with different line of products and multiple profit center wise common cost centers.
We are trying to break the different line of products into different segments and same expense are being booked through single cost center and through different line of products also currently.
So in this scenario we plan to config multiple segment with single cost center. Is it possible? Technical Articles. Swaminathan Jambunathan. Posted on November 11, 4 minute read. Profit Center vs. Follow RSS feed Like. Link Real-time document split is one of the greatest advantages which ensures a faster close. Conclusion: We can see how PCA would be an effective way to get the balanced financial statements. Thanks, Swami. Alert Moderator. Assigned tags.
Related Blog Posts.SAP profit center is an organizational unit in management accounting and it shows the operating results of the organization from the perspective of management for the purposes of internal controlling. SAP profit center enable us to decentralize various units for reporting purposes and they are treated as different companies in an organization. Profit Center Accounting is a sub module in management accounting SAP CO and is tightly integrated with the new general ledger accounting.
It is used for the determination of profits and losses for individual internal areas using cost of sales approach or period accounting approach. Profit centers can also be used as investment centers by calculating the fixed assets capital. The difference between a cost center and a profit center is that a cost center is only responsible for the costs in a company whereas a profit center is responsible for both revenues and costs.
Therefore, SAP profit center can be seen as a sub company in a company because it controls revenues and costs and resulting profits and losses. The basic usage of SAP profit center is analysis of the revenues and costs for a particular area such as a plant, a business unit or a product line.
The reason is that if a profit center is used for external reporting purposes, then this profit center should be defined as a company code. Now, the main question is how cost and revenue are posted or flow in SAP profit center.
The answer is that a profit center is stored in the cost center master data and through this the cost flows in the profit center. Whereas the revenue flows from the sales order created for a finished product as the profit center is also stored in the material master data. So, basically the cost and revenue generated from the sales order of the finished product is directed towards the profit center.
Once all the revenue and cost are in the profit center, the company can write their own reports using the report painter for internal analysis or use one of the SAP standard reports.
One of the important parts of defining a new SAP profit center is to assign the profit center to a standard hierarchy after creating it. You should assign the profit center to a group node of the standard hierarchy. The standard hierarchy is maintained from the application menu. On the initial screen of KE51 transaction, please enter ID of the profit center that you want to create and click on Master Data button. The system will take you to the second screen of the transaction where you should enter some information under Basic Data tab: Profit center name and short description Person responsible for the profit center Profit center group under which the profit center is created After entering these details, click on the save button.
The SAP system will save the profit center in an inactive mode. While a profit center is in inactive mode it cannot be used for entering data in business transactions. A Profit Center was Saved with Inactive Status If you want to use the newly created profit center, it is necessary to activate it.
To activate the profit center, click on the activate button on the same screen. You have successfully created a profit center. Next, click hierarchy button to continue with defining a hierarchy of profit centers in the new group. On the screenshot below you can see a sample hierarchy of group PCA Have any questions or comments? We would love to hear your feedback in the comments section below.
Is it possible that in CO department not to create and maintain profit center and have nothing to do with Profit Center Sub-module while they organization as a whole has a company code?
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