Profit Center Accounting

To Know Product wise Profitability

To Know Area wise Profitability

Expenditure à Through Cost Centers

Income à Through Automatic Assignments 

 A Profit Center can have one or more Cost Centers

 In PCA, Postings will be done through DERIVATION RULES
 Profit Center and Business Area will be assigned in Cost Center PCA - Product wise Structure
(Sales Accounts Product wise):
 
                                                Company

                                                       |

                                           Company Code

                                                       |

                                            Business Area                                                      

|                                                   

                        |                                   |                                               |

Product 1 (Profit Center)          Product 2 (Profit Center)          Product 3 (Profit Center)                       
|                                                          

            |                                   |                                   |

Cost Center A              Cost Center B              Cost Center C  PCA - Area wise Structure (Business Area
= Profit Center):
 
                                                Company

                                                       |

                                           Company Code

                                                       |                                                   

                        |                                   |                                   |

Busi Area 1 (Product 1)            Busi Area 2 (Product 2)            Busi Area 3 (Prod 3)

                        |                                                                      

            |                                   |                                   |

Cost Center A              Cost Center B              Cost Center C  Set Controlling Area
SPRO > Controlling > Profit Center Accounting > Basic Settings > Set Controlling Area
 Maintain Controlling Area Settings
SPRO > Controlling > Profit Center Accounting > Basic Settings > Controlling Area Settings > Maintain
Controlling Area Settings
Select 'Elimination of Internal Business'
PC Local Currency: '20' Controlling Area Currency
Select 'Store Transaction Currency'
Valuation View: Legal Valuation
 Creation of Dummy Profit Center (KE59)
SPRO > Controlling > Profit Center Accounting > Master Data > Profit Center > Create Dummy Profit Center
 Set Control Parameters for Actual Data
SPRO > Controlling > Profit Center Accounting > Basic Settings > Controlling Area Settings > Activate Direct
Postings > Set Control Parameters for Actual Data
New Entries     Check on 'Line Item' and 'Online Transfer'
 Maintain Plan Versions
SPRO > Controlling > Profit Center Accounting > Basic Settings > Controlling Area Settings > Activate Direct
Postings > Plan Versions > Maintain Plan Versions
Select '0' Plan/Actual Version
In 'Settings for PC Accounting' à        Year: 2003
                                                            Select 'Online Transfers' and 'Line Items'

                                                            Exchange Rate Type: 'B' Bank Selling Creation of Profit Center

(KE51)

Accounting > Controlling > Profit Center Accounting > Master Data > Profit Center > Individual Processing >
Create Assignment of Profit Center in Cost Center (KS02)

Accounting > Controlling > Cost Center Accounting > Master Data > Cost Center > Individual Processing >
Change

In Cost Center, Select 'Master Data' Button and Assign Profit Center Creation of Sales A/c. and Revenue
Cost Element (FS00)

'Sales - Product 1' Account under Sales Group            Field Status Group: G001

Environment > Edit Cost Element à Cost Element Category: '11' Revenues Automatic Account
Assignments for Revenue Elements (OKB9)
SPRO > Controlling > Profit Center Accounting > Actual Postings > Maintain Automatic Assignment of
Revenue Elements
New Entries     Co. Code: XYZ           Cost Element: Sales - Product 1 A/c. No.
** Account Assignment: '2' Business Area Mandatory **
Save the record & Double click 'Details per Business Area/Valuation Area'
New Entries     Business Area: Give Business Area
Profit Center: Give Profit Center for Product 1
 Derivation Rule for Assignment of Balance Sheet items to Profit Center (3KEH)
(Where Business Area = Profit Center)
SPRO > Controlling > Profit Center Accounting > Actual Postings > Choose Additional Balance Sheet and P&L
Accounts > Choose Accounts
New Entries     Account From: 100000            To: 299999
Default Profit Center: Profit Center for Product 1
 Derivation Rule for Finding the Profit Center
SPRO > Controlling > Profit Center Accounting > Actual Postings > Choose Additional Balance Sheet and P&L
Accounts > Derivation Rule for Finding the Profit Center
Menu 'Strategy' > Display Change                   Select 'Create Step' Button
Derivation Rule: Business Area to Profit Center Assignment
Under 'Source', Select Drop Down Menu (Under RACCT)
Select 'GSBER' Business Area &         Save
Select 'Maintain Rule Values' Button
Select 'On/Off' Button (Source Fields On/Off) Ctrl+F4
From Account              To Account                  Business Area               Profit Center
100000                        299999                        HYD                            Product 1
100000                        299999                        MUM                          Product 2
 Define Number Ranges for Local Documents (GB02)
SPRO > Controlling > Profit Center Accounting > Actual Postings > Basic Settings Actual > Define Number
Ranges for Local Documents
Select 'Maintain Groups' Button
Check on 'Actual Doc from Direct Posting with GB01'
Group > Insert                          Co. Code: XYZ           Enter
Text: Actual Documents for XYZ
Year: 2003       From Number: 1           To Number: 100000                 Enter & Save
 The same way Check on 'Planned Doc from Direct Posting with GB01'
Interval > Maintain                    Co. Code: XYZ           Select 'Interval' Button

Year: 2003       From Number: 100001 To Number: 200000     Enter & Save Planning of P&L items for
Profit Centers (7KE1)

Accounting > Controlling > Profit Center Accounting > Planning > Cost/Revenues > Change

Version: '0' Plan/Actual Version

Period à         From: Month    To: Month        Fiscal: 2003

Profit Center: Product 1

Account Numbers: 100000 To 499999

Entry à Select 'Form Based'

Select 'Overview Screen'         &         Plan as desired Planning Balance Sheet Accounts (7KE3)

Accounting > Controlling > Profit Center Accounting > Planning > Balance Sheet Accounts > Change

Plan as desired in the above way Profit Center Plan/Actual/Variance P&L items (S_ALR_87013326)

Accounting > Controlling > Profit Center Accounting > Information System > Reports for Profit Center
Accounting > Interactive Reporting > Profit Center Group: Plan/Actual/Variance

Give Period, Profit Center & Execute                Report can be viewed

From Reporting Screen use 'Call up Report' option for other Reports & Vouchers. Profit Center
Plan/Actual/Variance Balance Sheet items (S_ALR_87013336)

Accounting > Controlling > Profit Center Accounting > Information System > Reports for Profit Center
Accounting > Interactive Reporting > Profit Center Group: Balance Sheet Accounts: Plan/Actual