Profit center to material numbers

[Former Member]

Hy all,

I have a question regarding the profit centers.

I have some materials numbers which are used in more than one production department.

My question would be how to i connect the profit centers and cost centers with each department?

When the material is used how do i know to which profit center should be booked?

Thank you very much

King regards,

V.

[former_member731305 · Accepted solution]

Hi Vasile,

Profit Center is mapped to a Plant for the material master. That means, in the material master, you can maintain one PC for each Plant. If you want to have multiple Profit Centers assigned to the materials, you would need to create multiple logical plants for the material.

However, if you want to consume a material, you can always do that against a particular Cost Center, which will be mapped to the required Profit Center.

Hope this helps.

Debayan

[rajneesh_saxena]

Dear Vasile

Production departments are created as production Cost centers and in the definition itself you can assign Profit center in it and at the same time you can also define department name in this, to which department this cost center belongs to. This way the 3 are connected. And the materials issued to Production cost centers are also captured in Profit center based on this relation.

How ever normally we don't issue the materials (to be used in process) to cost centers.

Regards

Rajneesh Saxena

[Former Member]

Dear Rajneesh,

thank you for your answer.

I understand what you are saying, but if in plant 1000 i have a materialnr. XYZ assigned a profit center DEPT1.

And if i use this materialnr. XYZ in DEPT2 how to i know to which profit center it goes.

Or in Plant 1000 i can use for materialnr XYZ 2 profit centers? I mean profit centers DEPT1, Dept2, DEPT3 cand be all assigned to materialnr. XYZ?

Because what i saw is that the materialnr. XYZ cand have only one profit center.

Thanks

[Former Member]

Hi,

Material is plant level where as Profit center is company code level, it meas that one material may have more than one profit center.

For example, material Code XYZ is created with plant-1000 with profit center ADMIN

same way you create  material Code XYZ with plant-1000 with profit center MARKET.

like that each plant level you can give different profit centers.

While creating cost center you need to define profit center, i.e. one profit center you can assign to more than one cost center.

Thanks

[Former Member]

Hy,

thank you for your answer.

My qouestion is if i proceed as you said before, that means that for Plant 1000 i will have to material codes XYZ with each with his profit centers or same material code XYZ with different profit centers?

Thanks

[Former Member]

Hi,

That is depends upon the requirement.

If Profit centers are decided on the basis of region (east, west, north & south) while creating South Material codes with reference to plant you need to define south profit centers.

I