Before creating a profit center we need a Controlling Area.
We can create it in T-code OX19. In SAP, Controlling Area is an organizational element which is responsible for management of costs and profits. Then, we have to assign a company code to the Controlling Area using the same OX19. Then, we need to create the standard hierarchy for Profit Center – t-code KCH1. In OKE5 we check which Profit Center Hierarchy is assigned to your controlling area. KCH1 - Creation of Profit Center using Standard Hierarchy b. Create Primary Revenue/ Cost Element – KA01 c. Create Operating Concern - Prerequisites OPERATING CONCERN 1. Set Operating Concern - KEBD