SAP Profit Center Tutorial: Create,
Group, Posting & Planning
Scott Livingston October 22, 2022
Why A Profit Center is Required?
The Primary objective of Profit Center is to represent an independent
organizational subunit that operates practically independently in the
market, bears responsibility for it’s own costs and revenue , and can
be expanded to become an investment center or can be treated as a
Company within a company.The Profit center approach embodies the
increasing re-establishment between internal and external
accounting, functioning as a connecting link between two
Accounting concepts.
Profit Center Accounting helps in answering the following questions :
1. How much is the revenue?
2. How much is the cost of goods manufactured?
3. How much is the contribution margin?
4. How much is the administrative and sales costs?
5. How much is the operating profit?
ROI , EVA and cash flow analyses are possible at profit center level.
Create Profit Center
Step 1) Enter Transaction code KE51 in the SAP Command Field
:
Step 2) In the next screen , Enter the controlling area in which the
Profit Center is to be created
Step 3) In the next screen, Enter a unique Id for the Profit Center
Step 4) In the next screen, Enter the Following
:
1. Enter the name of the profit center
2. Enter a short description of the profit center
3. Enter the person responsible for the profit center
4. Enter the profit center group for which the profit center belongs
to.
Step 5) Press ‘Save’ button , for saving the profit center from the
SAP Standard Toolbar
The Profit is saved in the inactive mode
.
:
Step 6) Press the ‘Activation’ Button for the activation of the profit
center from the Application Toolbar
Step 7) Check the Status bar for the status of creation of profit
center.
Profit Center Group
Step 1) Enter Transaction Code KCH1 in the SAP Command Field
:
Step 2) In the next screen , Enter the Controlling area in which the
profit center group is to be created
Step 3) In the next screen, Enter a unique Id for the Profit center
group to be created
Step 4) In the next screen, Enter a short description for the Profit
center group
Step 5) Press ‘Save’ button , from the SAP Standard Toolbar to
create the profit center group
:
Step 6) Check the Statusbar for the creation of the profit center
group
Profit Center Posting
Posting to Profit Center Via Financial Document (FI Interface)
Step 1) Enter Transaction code FB50 in the SAP Command Field
Step 2) In the next screen , Enter the following header data
1. Enter Document Date
2. Enter Company code
:
Step 3) Enter the Following Line Item Data
1. Enter Debit G/L Account
2. Select Debit
3. Enter Debit Amount
4. Enter Credit G/L Account
5. Select Credit
6. Enter Credit Amount
Step 4) After Enter the Line items ,
1. Select the Debit Line Item
:
2. Press Choose Detail button
Step 5) In the next detail line item screen, Enter the Profit Center
Step 6) Press ‘Save’ button from SAP standard toolbar to post the
document
:
Step 7) Check the status bar for the Document number for the
confirmation of posting
Profit Center Planning
Planning Process is not a one-time activity, but rather an iterative
process, which is usually performed in several steps.Profit center
planning is an integral part of your overall company planning. The
integral character of business planning is particularly apparent within
the context of Profit Center Accounting, as the planning data used
here is largely created in other applications (such as Cost Center
Accounting) and can be supplemented or changed in Profit Center
Accounting. Profit center planning is part of shortterm business
planning and thus encompasses a span of one fiscal year. During the
profit center planning process, Individual planning areas are
combined into an integrated planning network. We can use various
plan versions in order to depict various planning Profit center
planning offers us the following methods of planning:
1. Copying existing plan or actual data to a plan
2. Posting plan data by period or simultaneously by transaction
from other applications
3. Manual planning of profit centers
4. Distribution and Assessment of data between profit centers
5. Various plan reports for comparison of different plan versions
SAP Profit Center tcodes
Code Description
PROF Profit center Accounting Enterprice Controlling
Profit center: Actual Line Items Enterprice
KE5Z
:
Controlling
Create profit center Document Enterprice
9KE0
Controlling
3KEI Derive Default profit center Enterprice Controlling
KE51 Create profit center Enterprice Controlling
KE52 Change profit center Enterprice Controlling
KE53 Display profit center Enterprice Controlling
Profit center: Balance carr’d forw. Enterprice
2KES
Controlling
KCH3 Display profit center hierarchy Enterprice
Controlling
2KEE Profit center: Totals Records Enterprice Controlling
S_AC0_52000888 Payables: profit center FI
Change profit center hierarchy Enterprice
KCH2
Controlling
KCH1 Create profit center Group Enterprice Controlling
KE54 Delete profit centers Enterprice Controlling
:
