Sap co profit center accounting

SAP Profit center accounting provides the information of an organization’s profit and loss. The method which can be utilized for profit center accounting is period accounting. Profit centers can be set-up to identify product lines, divisions, geographical regions, offices, production sites or by functions. Profit centers are used for internal control purposes enabling management the ability to review areas of responsibility within their organization. The difference between a cost center and profit center is that the cost center represents individual costs incurred during a given period.

1. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING
SANDESH KAKDE
EMAIL:[email protected]
SAP CUSTOMIZING TABLE OF CONTENTS:
SR. SUB. OBJECTS TCODE EXAMPLE
1 INTRODUCTION & SCENARIO
2 CONFIGRATION
3 SET CONTROLLING AREA OKKS “SRK”
4 MAINATIN CONTROLLING AREA SETTING 0KE5 “SRK”
5 CREATE DUMMY PROFIT CENTER KE59 “DUMMY”
6 SET CONTROL PARAMETERS FOR ACTUAL
DATA
1KEF 2018 IN “SRK”
7 MAINTAIN PLAN VERSION OKEQ “0”
8 DEFINE NUMBER RANGE FOR LOCAL
DOCUMENT
GB02 01 & 02
9 CREATE PROFIT CENTER KE51 “AUOTOCAR” &
“TYRECAR”
10 CREATE ACCOUNT GROUP KDH1 “PLITEMS” &
“BSITEMS”
11 DIFFERENT WAYS TO DERIVE PROFIT
CENTER

12 1 ASSIGN PROFIT CENTER TO COST CENTER KS02
2 TEST F-02
13 1 PROFIT CENTER DERIVED FROM COST
ELEMENT

2 CREATE COST ELEMENT FS02 “300000”
3 MAINATAIN AUTOMATIC ACCCOUNT
ASSIGNMENT (BA)
OKB9 SRKB WITH TYRECAR
SRKH WITH AUTOCAR
4 TEST F-02
14 1 PROFIT CENTER DERIVED FROM
AUTOMATIC ASSIGNMENT TO
BALANCESHEET GL
“100000 TO 299999”
WITH “AUTOCAR”
2 TEST
15 1 PLANNING PROFIT CENTER WISE FOR P&L
ITEMS
7KE1 PLANNED FOR
“AUTOCAR”
16 1 PLANNING PROFIT CENTER WISE FOR
BALANCSHEET ITEMS
7KE3 PLANNED FOR
“AUTOCAR”
2 TEST F-02 P&L ITME DOC.
3 TEST F-02 BS ITEM DOC.
17 1 VIEW VARIANCE REPORT FOR P&L ITEMS S_ALR_87013326 REPORT
18 1 VIEW VARIANCE REPORT FOR BS ITEMS S_ALR_87013336 REPORT

2. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING

INTRODUCTION

PROFIT CENTER ACCOUNTING:
This is used to view profitability division wise /product wise /location wise if business
area is not use in FI

Ideal scenario
Company FI
|
Company code FI
|
Business area FI
(Location)
|
-------------------------------------------------------------------------------------
| | | |
Steel Cement Pharma Co-profit center
Division Division Division Accounting
| |
Product wise Co profitability
Analysis


Option 1 Option 2
Hyderabad location HYD BGL MOM
| | | |
Steel Cement Pharma Steel Cement Pharma
Profitability Profitability Balance sheet

The advantage of profit center accounting is it derives profit center automatically though
derivation rules.
A) In case of expenditure - Through cost centres
B) In case revenues - Automatic account assignment
C) In case of balance Sheet (Applicable for option 2) - Through business area

Examples:

a) At the time of creation of cost center assign profit center
Dept A-Assign profit center steel

b) At the time of posting

Wages a/c Dr 500000 Dept A (Cost center)
To Bank 500000

It updates cost center Dept A as well as profit center steel.

We must create dunning profit center. At the time of posting, when there is no

3. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING
derivation rules, system updates dummy profit center. Transfer from dummy profit center
to respective center. Create derivation rule so that future transactions will not go to
dummy profit center. They will go to respective profit centres.


CONFIGURATION


STEP 1: SET CONTROLLING AREA:

OKKS:

MAINATIN DEFAULT CONTROLLIN AREA.



IN CURRENT SCENARIO IT IS “SRK”

STEP 2: MAINTAIN CONTROLLING AREA SETTING:

0KE5:



We have already did profit center accounting in Quick SAP-FI configuration book. Still we
can maintain the controlling area setting for profit center accounting as shown above.

4. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING
STEP 3: DUMMY PROFIT CENTER:

KE59:

We need to create dummy profit center. This is requiring when we do not maintain profit
center while posting. That this profit center will be use.

5. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING
STEP 4: SET CONTROL PARAMETERS FOR ACTUAL DATA:

1KEF:



This is the setting for start our profit center accounting. i.e. from year.


STEP 5: MAINTAIN PLAN VERSION

OKEQ:



Select the “0” plan version and click on setting for profit center accounting.

Below screen will appear.




In above screen, we will maintain the year, online transfer & line items setting. We can also
set exchange rate type for profit center document.

6. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING
STEP 6: DEFINE NUMBER RANGE FOR LOCAL DOCUMENTS:

GB02:

We must maintain number range for profit center document.
a) Actual document
b) Planned docuement


Click on change group



Select the “actual document from direct posting with GB01”

Double click on the same. System will ask for Co. code.

7. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING

No. field might be suppressed, but you can still go on and maintain year and from no. to
Number range. It will automatically come. Save.



Click back button.

Select “Planned doc. From direct posting with GB01”
Double click on the same.



Put company code.

8. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING


Maintain number range for planned document. SAVE.

STEP 7: CREATE PROFIT CENTER:

KE51:

In current scenario I have created two cost centers.
A) Autocar
B) Tyrecar

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6 PROFIT CENTER ACCOUNTING






STEP 8: CREATE ACCOUNT GROUP:

KDH1:

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6 PROFIT CENTER ACCOUNTING




SAVE

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6 PROFIT CENTER ACCOUNTING


SAVE

12. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING
There are various ways to derive the profit center while posting.

Option 1: Profit center derived from cost center
Option 2: Profit center derived through cost element (Automatic Assignment)
Option 2: Profit center derived through default profit center to GL a/c’s

We will discuss them one by one.




OPTION 1: - PROFIT CENTER DERIVED FROM COST CENTER


STEP 8: ASSIGN PROFIT CENTER TO COST CENTER

KS02:

13. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING




Here we have assigned profit center to cost center. Now whenever we will select this cost
center at the time of posting assigned profit center will be used as default profit center in
document.


TEST:

F-02: Post FI document with cost center “ Production”



We can see above the profit center assigned to that cost center is picked up by the system.

14. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING

OPTION 2-: PROFIT CENTER DERIVED THROUGH COSTELEMT AUTOMATIC
ASSIGNEMENT.


STEP 9: CREATE COST ELEMENT FOR SALES A/C (CONVERT IT REENUE A/C)

FS02:





STEP 10: MAINTAIN AUTOMATIC ACCOUNT ASSIGNMENT OF REVENUE
ELEMENTS:



MAINTAIN COSTELEMT “300000” AND “2 – BUSINESS AREA MANDETORY OPTION”
THEN CLICK ON DETAIL PER BUINESS AREA/VALUATION AREA .

15. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING



IN CUREENT SCENARIO I HAVE MANITAINED PROFIT CENTER “TYRECAR” WITH
BUSINESS AREA “SRKB” AS A DEFUALT PROFIT CENTER AND PROFIT CENTER
“AUTOCAR” WITH BUSINESS AREA “SRKH”.

NOW WHNENVER DOCUMENT WILL BE POSTED TO COST ELEMENT “300000” WITH
ANY OF THE ABOVE BUINESS AREA, THEIR RESPECTIVE PROFIT CENTER WILL BE
USED AT THE TIME OF POSTING.


TEST
F-02



WE CAN SEE ABOVE THE “AUTOCAR” PROFIT CENTER IS USED SINCE WE HAVE
ASSIGNED THIS PROFIT CENTER IN COST ELEMENT. MOST OF THE ORGANISATION
USED THIS TECHNICQUE TO USE THEIR REQUIRED PROFIT CENTER.

16. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING
OPTION 3: PROFIT CENTER DERIVED FROM AUTOMATIC ASSIGNMENT
(BALANCE SHEET GL ACCOUNT)

STEP 11: ASSIGN DEFAULT PROFIT CENTER TO ACCOUNTS:



We can maintain GL document number range and assigned default profit center in above
setting.

In current scenario, I have maintained balance sheet GL account number range. i.e. From
“100000” to “299999” with “Autocar” as default profit center.

Now whenever I will post document in company code “SRK” to any GL between this range,
profit center “Autocar” will be picked up automatically.


TEST: F-02



We can see above, 2 line items has two different profit center. Because we have maintain cost
center as “PRODUCTION” and “Tyrecar” profit center was maintained in that cot center.

Profit center “Autocar” is picked up by the system because of above setting, since GL-
200105 is falling in the give no. range.

Till here we are done with discussion of deriving profit center in document. We can maintain
it manually as well while posting a document.

17. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING
We can plan the amount per profit center.

1) PLANNING PROFIT CENTER WISE FOR P&L ITEMS:

7ke1

In below transaction, we can plan the cost/revenues profit center wise.


In current scenario, I have planned for 6
th
period for “AUTOCAR” profit center.



Maintain the amount without any symbol or logo in profit center report currency field.
Such value I have maintained for two profit & loss accounts.
1) Sales A/c- Rs. 500000
2) Salaries A/c-Rs.400000

18. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING


Then click on SAVE.




Same way we will maintain values for Balance sheet GL accounts.

19. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING
PLANING PROFIT CENTER WISE FOR BALANCSHEET ITEMS:

7KE3:

20. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING






F-02:

21. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING


F-02






VIEW VARIANCE REPORT PROFIT CENTERWISE FOR P&L ITEMS:

S_ALR_87013326:

22. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING

OUTPUT:







VIEW VARIANCE REPORT PROFIT CENTERWISE FOR BALANCESHEET ITEMS

S_ALR_87013336

23. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING

OUTPUT:

24. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING
Transfer of values from one profit center to another profit center
One cost center works for number of profit centers we can assign only one profit center is
cost center.

In dept A Profit center steel - From profit center steel transfer to cement

Manual transfer through cycles
*No.FI document will be generated
*No.CO document will be generated
*Only profit center document will be generated.


SCENARIO:

COST CENTER – “ADMINIST”

TRANSFER 5000 INR FROM PROFIT CENTER “AUTOCAR” TO “TYRCAR”

TEST:

TCODE: 9KE0



Maintain the layout “8A-001”



Maintain Company Code “SRK”

25. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING





To meet the current scenario, I have debited the profit center “TYRECAR” na credited “AUTOCAR”
Note: do not maintain any symbol or logo or special characteristics. Just maintained “-“ since we had
to credit from one profit center.

Click on SAVE

26. SAP – CO CUSTOMIZING GUIDE
6 PROFIT CENTER ACCOUNTING

To view profit center document:

9KE9:







END PROFIT CENTER ACCOUNTING