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SAP Profit Center Accounting - Overview and System Guide - Skillstek
SAP Profit Center Accounting - Overview and System Guide - Skillstek
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Likewise, it lets you set up our profit centers according to product (product lines, divisions)
geographical areas (regions, offices or production sites) or function (production, sales).
Furthermore, it also lets you calculate internal operating results for the profit centers.
PC as an Organizational Sub-Unit
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It represents an organizational sub-unit that operates independently on the market and bears
responsibility for its costs and revenues.
You can properly organize your organization into profit centers by assigning the Master Data of
each profit relevant object to the profit center. This includes-
Materials
Cost Centers
Orders
Projects
Sales Orders Assets
Cost Objects
Fixed Assets
Payables
Receivables
Material stocks
Work in process (WIP)
& more
This makes it possible to calculate such key figures as profit on sales, return on investments and
Cash Flow.
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SAP Easy Access => Accounting => Financial Accounting => General Ledger => Master
Records => Profit Center => Current Settings
(RDBMS – Relational Database Management System. It is a storage place that keeps data of
everything related to SAP applications).
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SAP Easy Access => Accounting => Controlling => Profit Center => Master Data => Profit
Center => Individual Processing => Create
The Tcode KE51 is used to create Profit Center Master data.
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SAP Menu => Accounting => Financial Accounting => General Ledger => Master Records =>
Profit Centers => Individual Processing => Create
This section further helps SAP users and consultants to get a quick view of all revenue-
expenditure data. These are mostly of use to SAP S/4HANA Finance consultants as they are the
ones who deal with the reports work commonly.
SAP Easy Access => SAP Menu => Accounting => Controlling => PC accounting => Information
System => Reports for PC Accounting => Line Item Reports => KE5Z – Profit Center: Actual
Line Items.
SAP menu => Accounting => Financial Accounting => GL => Master Records => PC =>
Standard Hierarchy
This subsequently, ensures to make that reconciliation between EC-PCA and Financial
Accounting possible in such instances. You can also discover missing assignments by analyzing
the postings to the dummy profit center. And also to know what you should do during the period-
end procedure.
The profit center assignment is also passed on from the sales order through the supply chain.
Here is the path:-
Sales order => Delivery note => Goods issue => Billing Document.
This means that when you post the goods issue, the corresponding revenue value for goods is
also passed on to the profit center of the sales order.
Parts of Sales Order
You can divide Sales orders into Header Data and Item Data.
The assigns each order item separately to a Profit Center. This assignment is passed from the
sales order to the delivery note and then on the billing document.
So, when any goods will be issued, there will be a change in the finished goods stock
automatically. And thus, it will update the PC as well.
The SAP system transfers the following data from bills and debit and credit memos to
Profit Center Accounting:-
Revenues
Sales deductions ( shipping, discount etc)
Accruals
The profit center is assigned at the item level of the sales order. As a default, the system
proposes the profit center of the material in the supplier plant.
Whenever any transaction related to the profit center is posted into the system, it generates profit
center actual items. So we can get this report by using the Tcode KE5Z.
Easy Access=> Accounting => Controlling => PC Accounting => Information System – Reports
for PC Accounting => Line Item Reports => KE5Z- Profit Center: Actual Line Items
EndNote
Hope many of your doubts have been cleared with this guide. A very important aspect of PC is
the Activation part. Every SAP S/4HANA Finance Consultant must know how to activate the
profit center Accounting in SAP S/4HANA. Without this, your configuration is incomplete.
However, this thing can be best learn practically, through proper SAP S/4HANA Finance training.
Even the above-mentioned guide and steps also you must do in system to learn them well.
Moreover, SAP Financials is all about practical. The more you do it in system, the better you
become skilled on it.
Watch Video: Use of SAP Profit Center Accounting and Internal Order in O2C
Categories: SAP CONTROLLING SAP FICO SAP HANA SAP S/4HANA FINANCE
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