SAP CO Profit Center is used for managing internal controlling. When you divide your company into profit centers, it allows you to delegate responsibility to decentralized units and treat them as separate companies in a company. It also allows you to calculate key figures in cost accounting like ROI, Cash flow, etc.
Profit Center is a part of Enterprise Controlling module and is integrated with a new General Ledger Accounting. Key Features of SAP CO Profit Center Profit Center Accounting is used to determine profit for internal areas of responsibility. It lets you determine profits and losses using either period accounting or the cost-of-sales approach. It allows you to analyze fixed assets by profit center, thus using them as investment centers. It allows to expand profit centers to investment centers. Why Do We Create Profit Center? The main aim of creating a Profit Center in SAP CO is to analyze the cost of a product line or a business unit.
You can also generate P&L accounts according to a Profit Center and also generate balance sheets, however a Profit Center should only be used for internal reporting purpose. The key components of a profit center include – name of the profit center, the controlling area under which it is assigned, time period, person responsible for the profit center, standard hierarchy, etc. How to Create a Profit Center? Use the T-code KE51 or go to Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center → Individual Processing → Create. In the next screen, enter the controlling area in which the profit center is to be created and click the tick mark. In the next screen, enter the unique profit center ID and click Master Data.
A new window will open where you need to input the following details − • Profit center name and a short description of the profit center. • Person responsible for the profit center. • Profit center group for which the profit center belongs to. Click the Save icon at the top to create the profit center in inactive mode.
The primary objective of Profit Center is to represent an independent. Profit Center Accounting helps in. How much is the operating profit? How to Make Profit Center Adjustments in. Do not need to activate profit center accounting in the. Used classic profit center accounting but were. Ever since release ECC 5.0 clients using the new general ledger with the profit center or segment scenarios active were warned against activation of classic PCA. DOC Splitting in New GL and Profit center accounting activation. Do we need to activate 'Profit Center Accounting. That we can use classic PC accounting.
![Activate Classic Profit Center Accounting Activate Classic Profit Center Accounting](http://3.bp.blogspot.com/-PFcCgz6CBhw/UKmBBLtGVFI/AAAAAAAABD4/VvFN2rdtIzk/s1600/new+gl+table.jpg)
To activate the profit center, click the icon as shown in the following screenshot. How to Create a Profit Center Group? Use the T-code KCH1 or go to Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center Group → Create.
![Activate Classic Profit Center Accounting Activate Classic Profit Center Accounting](https://www.erpcorp.com/images/IMG_0321.jpg)
Enter the Controlling Area in which the Profit Center is to be created. Enter the Unique Profit Center Group Id as shown below and press Enter. Enter the short description for the profit center group and click the Save icon at the top.
We recently upgraded a test system from S/4 1610 to S/4 1709 and one of the interesting things that we found was that SAP is recommending that the switch for activating profit center accounting in Controlling should be activated. This was a bit of a surprise because I found no mention of this in the Simplification document for 1709 or in any on-line searches.
![Activate Classic Profit Center Accounting Activate Classic Profit Center Accounting](https://t.realgeeks.media/thumbnail/-e1qK1qjztUgeEN4A4iRBR8Gke4=/trim:top-left:50/https://property-media.realgeeks.com/37/155835a782e0edafac555c840e53756b.jpg)
Ever since release ECC 5.0 clients using the new general ledger with the profit center or segment scenarios active were warned against activation of classic PCA. With the new GL scenarios profit center functionality was incorporated in the GL and the old profit center ledger 8A was not activated. In this case the classic reports in the information system for PCA would not return any results if they were executed.
For example, the old profit center line item report KE5Z when run in our 1610 system gives no results Also, any of the old report painter based reports also return no data as they are reading from libraries based on the 8A ledger. For example, report S_ALR_87013326 - Profit Center Group: Plan/Actual/Variance would return: This is expected behaviour since PCA is not active in the Controlling Area. After our upgrade we were testing plant maintenance orders and started getting errors on cost calculation related to profit center accounting.
T he 415 message states 'FI-GL (new)' scen. FIN_PCA used in ldgr 0L; activate PrCtr Acctng in COAr 1000 Message no. FINS_ACDOC_CUST415 Diagnosis The FI-GL (new) scenario FIN_PCA is assigned to ledger 0L in table FINSC_LEDGER_SCEN. System Response A consequence of these table entries is that the system regards Profit Center Accounting as active.
The FI-GL (new) scenarios are obsolete: In S/4HANA there is no IMG acitivity available for maintaining scenarios. However, the system still evaluates these obsolete Customizing settings. In order to make it transparent for users that Proft Center Accounting is active, please activate Profit Center Accounting: Procedure For controlling area 1000, in the fiscal-year dependent settings of the controlling area.
Because the FI-GL (new) scenarios were neither time-dependent nor fiscal year-dependent, please activate Profit Center Accounting for all fiscal years. Note that activating Profit Center Accounting does not automatically activate the 'old' profit center ledger 8A. Is not mandatory. This seems to indicate that we should now activate profit center accounting in conjunction with using the New GL scenarios. The first link from the message takes you to 0KE5 where I activated PCA in the controlling area (see below) it seems that the check box for PCA activation has been removed from the control indicators in OKKP. After this change we are able to cost and release the PM order.
Now when we make postings we are generating an additional document. This one occurred on the MIGO to the order but we also got one on settlement as well. Out of curiosity I ran the old profit center line reports and information system reports and: The report is stating ledger 8A and the fields are referencing table GLPCA which also shows ledger 8A. The other report painter reports also work and return values. I was confused by this so went back to the message and followed the link for is not mandatory. This takes us to 1KEF where I believe the idea is to deactivate updates to PCA.
I also had to deactivate the following error messages: Now when I process the transactions I get no PCA documents and no ledger 8A updates So at the end of the day the system is working but I have been unable to find any documentation on this change or why is it necessary. John Pringle is the SAP FICO Competency Group Lead with Illumiti, an SAP Partner and a leading niche SAP systems integration and management consulting company based in Toronto, Canada. He is the product owner for the SAP all-in-one Mining Solution, one of Illumiti’s all-in-one SAP solutions. John has been working in SAP consulting for over 15 years and has previously worked for PwC, IBM and Accenture. He has implemented SAP solutions in a number of industries including mining, automotive, food processing, semi-conductor manufacturing and industrial and building products. He is experienced in implementing most areas within SAP FICO as well as areas in PS, MM, SD and PP.
John has an MBA in Finance and International Business from Schulich School of Business in Toronto and is a CMA and CPA. John can be contacted at or on LinkedIn. John Pringle is a featured speaker at Controlling 2017. Learn more about his session. If you would have studied the release notes, you could have read that if you convert to S//4HANA FROM a new GL ECC, you first need to check iff ledger 8A is deacrivated. Some SAP customers decide to run ledger 8A in parallel after New GL migration.
Nothing with that. But you must deactivate it before moving to S//4HANA. Customers who are still on Classic PCA and not in new GL should not deactivate before conversion, but should deactivate as a consecutive step.
You need to be very carefull with S//4HANA concersions. SAP can offer you a service to do it for you. If you would have studied the release notes, you could have read that if you convert to S//4HANA FROM a new GL ECC, you first need to check iff ledger 8A is deacrivated. Some SAP customers decide to run ledger 8A in parallel after New GL migration. Nothing with that. But you must deactivate it before moving to S//4HANA. Customers who are still on Classic PCA and not in new GL should not deactivate before conversion, but should deactivate as a consecutive step.
You need to be very carefull with S//4HANA concersions. SAP can offer you a service to do it for you. If you would have studied the release notes, you could have read that if you convert to S//4HANA FROM a new GL ECC, you first need to check iff ledger 8A is deacrivated. Some SAP customers decide to run ledger 8A in parallel after New GL migration. Nothing with that. But you must deactivate it before moving to S//4HANA. Customers who are still on Classic PCA and not in new GL should not deactivate before conversion, but should deactivate as a consecutive step.
You need to be very carefull with S//4HANA concersions. SAP can offer you a service to do it for you.