Skip to Content
Former Member
Dec 05, 2013 at 03:44 PM

Decision on Profit Centers in Organisation structure


Hi Gurus,

Appreciate if you can help me with finalization of profit centers. Please find below scenario:-

We have one company code and one controlling area. Client is doing two types of businesses which is Distribution channel in SD and Plant in MM.

Now there are 4 types of products, client is dealing in, which are divisions in SD module.

Requirement is P&L on Dist.Channel and product line wise. Now, How and what profit centers we should create?

Suggestion from other consultant is that We will create One profit center for one distribution channel and Profit center group for other distribution channel. 4 profit centers under this profit center group which are reflecting different types of projects clients are having under this distribution channel. For product wise report, 4 different GL accounts created for each product.

I am not finding this suggestion correct........

What i am thinking is we should have 8 profit centers 4 for each product under 1 plant and 4 for each product under another plant. My only doubt in this is, which profit center will we enter in different projects?? Not sure will they have projects on product basis, if yes then we can enter the profit center of that product from the second plant???

I hope you understood my scenario and please suggest your options. This will be a great help for me.

Thank You