Profit center accounting

PROFIT CENTER ACCOUNTING

Step1: set controlling area

Path: spro – controlling – profit center accounting – basic settings – set controlling area-
T.code OKKS

Controlling area = click on enter

Step 2: maintain controlling area settings

Path: spro – controlling – profit center accounting – basic settings – controlling area
settings – maintain controlling area settings – T.code 0KE5 (zero KE5)

Standard hierarchy =
Select “elimination of internal business”
Profit center local currency type = 20(controlling are currency)
Select “store transaction currency” click on save

Step3: creation of dummy profit center

Path: spro – controlling – profit center accounting – master data – profit center – create
dummy profit center- t.code KE59

Double click “create dummy profit center”

Dummy profit center =
Click on “basic data”
Name =
Description =
Person responsible =
Profit center group = click on save.

Sstep4: set control parameters for actual data

Path: spro – controlling – profit center accounting – basic settings – controlling area
settings – activate direct postings – set control parameters for actual data t.code 1KEF

Click on “new entries” from=

Select “line items” and select “online transfer” click on save.
Step5: maintain plan versions

Path: spro – controlling – profit center accounting – basic settings – controlling area
settings – activate direct postings – plan versions – maintain plan versions

Select “0 plan/actual version”

Double click “settings for profit center accounting”
Select “new entries”
Year =
Select “online transfer”
Select “line items”
Exchange rate type = click on save

Step6: define number ranges for local documents

Path: spro – controlling – profit center accounting – actual postings – basic settings –
actual – define number range for local GL documents t.code GB02

Click “maintain groups”

Select “actual document from direct postings with GB01”
Go to menu, interval, and maintain
Company code = click on enter
Click on interval
Year =
From no =1
To no =100000 click on enter and save.

Click “back” arrow, click “planned doc. From direct postings with GB01

Go to menu, interval, maintain

Company code = click on enter
Click on “insert interval”
Year =
From no =100001
To no =200000 click on enter and save.
Step7: creation of profit centers

Path: accounting – controlling – profit center accounting – master data – profit center –
individual processing – create T.code KE51

Profit center = click on enter

Analysis period =
To =31.12.9999
Name =
Long text =
Person responsible =
Profit center group =
Click on “activate” button

Creation of another profit center.

Profit center = click on enter.

Analysis period =
To =31.12.2999
Name =
Long text =
Person responsible =
Profit center group =
Click on “activate” button.

Step8: assignment of profit center in the cost center

Path: accounting – controlling – cost center accounting – master data – cost center –
individual processing – change – T, code KS02

Cost center = click on enter

Profit center = click on save

Cost center = click on enter

Profit center = click on save

Step9: creation of revenue element for sales T.code FS00

GL account =300000
Company code =
Go to menu, GL account, and change
Click “edit cost element” button, click on “enter”
Cost element category =11(revenues) click on save
Sstep10: maintain automatic account assignment of revenue elements.

Path: spro – controlling – profit center accounting – actual postings – maintain automatic
account assignment of revenue elements. Tcode OKB9

Click on “new entries”

Company code =
Cost element =
Account assignment detail =2(business area mandatory) click on save.

Select the row created

Double click on “detail per business area/valuation area”
Click on “new entries”
Business area =
Profit center =

Business area =
Profit center = click on save.

Step11: choose accounts for balance sheet

Path: spro – controlling – profit center accounting – actual postings – choose additional
balance sheet and profit and loss accounts – choose accounts – Tcode .3KEH

Click “new entries”

Account from =100000
To =299999
Default profit center = click on save.

Click “profit center details” button

Click “create step” icon
Step description = profit center derivation
Source field name GSBER - business area click on save

Click “maintain rule values” button

Select “account number” column select “source field intervals on/off” button

Account no to business area profit center

100000 299999 hyd product1
100000 299999 Mumbai product2

Click on enter and save.

Step12: creation of A/C groups for planning

Path: accounting – controlling – profit center accounting – master data – account group –
create – T.code KDH1

Account group =PLITEMS click on enter

PLITEMS =profit and loss accounts
Click on “(insert) account” button
300000 – 499999 click on enter and save.
Click on back arrow
Account group =BSITEMS click on enter
BSITEMS =balance sheet accounts
Click “account” button
100000 – 299999 click on enter and save.

Step13: planning for P&L items

Path: accounting – controlling – profit center accounting – planning – costs/revenues –

change – T.code 7KE1
Version =
From period =
To =
Fiscal year =
Select “form based”
Profit center =
Account group =
Select “over view screen”
Amount in profit center report currency

Sales =
Salaries = click on save

Note: enter plan figures for all pl items. Use “ –“ (minus symbol) for all accounts.

Step14: planning for balance sheet items

Path accounting – controlling – profit center accounting – planning – balance sheet

accounts – change – T.code 7KE3

Version =
From period =
To =
Fiscal year =
Profit center =
Account group =
Select “form based”
Select “over view screen”
Amount in profit center report currency

Share capital =
Cash =

Note: enter plan figures for all BS items. Use minus symbol for all liabilities.

Step15: post transactions covering P&L items and B/S items.

Step16: to view the report showing plan/actual variance profit center wise.

Path : accounting – controlling – profit center accounting – information system – reports

for profit center accounting – interactive reporting - profit center group: plan/actual
variance.S_ALR_87013326

From period =
To =
Fiscal year =
Plan version =0
P&L accounts group =PLITEMS click on execute.

Step17: for balance sheet

Path: same as above t.code S_ALR_87013336

From period =
To =
Fiscal year =
Plan version =0
B/S accounts group =BSITEMS click on execute.