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Product wise Balance Sheet & P&L


We have the following scenario:

1 plant, 3 different products & 1 profit center.

Around 20% of raw materials are common to these 3 products

Business requirement is to have separate P&L and balance sheet for each product.

In this case do we need to create 2 additional plants (as 20% of raw materials are common to these 3 products) and 2 profit centres or there is a better option.

Pls. suggest.


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1 Answer

  • Posted on Sep 30, 2013 at 04:56 PM


    I have faced this many times with Indian clients and I term it as "fancy" requirement..

    Now, ask your client, can they break down the investment made in the company at product level?

    Do they have separate manufacturing set up for each product?

    Can they break down each expense incurred at the level of product?

    Can the bank balance be identified at the level of each product?

    What you can get is a profitability statement from COPA at product level, but not profit and loss account..

    And the Balance sheet can never be made available at product level.. It can be available at Plant level or PC level at max apart from being available at co code level

    Br, Ajay M

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