Profit center assignment in material master

[Former Member]

hi gurus,

on what basis we decide to assign a particular profit center in material master?

WWhen we extend material master for different plants, which profit we should enter each time?

thanks

[pankaj_pandey2]

Hi Mohit,

It depends upon your organisational structure, Your plants are different units which require seperate financial statement.i.e. plant and profit center rhave one to one relationship.

If this is the case you have to assign the profit center related to that plant where it is being extended.

Becasue the posting will affect the profit center which you would maintain in material. So keep your financial part in view while extending the material in MM. Else it would create an mess in system. wherever material posting will be done the netry will affect the different profit center and your reporting will become an issue.

Regards

Pankaj

[former_member222241]

Hi,

It can be maintained in the material master but

1. In case we are selling that material it is maintained at Sales: General/Plant level.

2. In case we are procuring that material it is maintained at Plant data / stor. 2

Hence, we should be very careful as accordingly we need to extend the view of that material.

Regards,

Tejas

[subhadeep_das]

Dear Mohit,

adding to what Kavita said, Profit center can be assigned at three levels

PC at Product Level

PC at region level or

PC by function ie Production,Sales etc.

best regds

Subha

[Former Member]

Hi Mohit,

This is a question which can be asnwered by Client as per the structure of their business as to what they have defined as Profit Centers in the business.

For example : If you have defined Plants as Profit center in your organisation, then yes, when you extend to different plant, the profit Center will change.

If you have defined Products/Product line as Profit Center, then it may not change even if you extend it to different plant. etc...

Regards,

Kavita

[Former Member]

Thank you so much.

But we have a scenario where there are 4 profit centers bases on types of projects under one plant. So it means there are 4 profit centers under one plant. Now my issue is which profit center we will assign in material master which is extended to this plant. Because we dont have any PC for this plant and that material can used in any of these projects???

And if we dont have 4 PCs under this plant and we create only one PC for this plant, so can we get profitability on these 4 types of projects from PS module?

Please help me in clearing my doubt. Question is should we have 3 PCs, one common and 2 for 2 plants or 6, 1 common, 1 for one plant and 4 under another plant on the basis of different types of projects????

Waiting.

Thank You

[Former Member]

Adding to above question, why we have two profit center fields in material master, one in costing view and one in sales general plant view????

What is the significance of these two fields? Profit center will be different or same in these fields??

I know in P2P cycle system picks pc from material master but from where system picks pc in sd cycle at delivery and billing????

I hope i have explained my question well...

Thanks

[ajaycwa1981]

Hi Mohit

I wil try to put all your Qs to rest..

1. Both the fields in Mat Master are same (MARC-PRCTR).. You can maintain PC in any of these fields

2. If you want to track project wise revenue and each Project is a PC for you, you can assign any PC in mat master (May be a common PC)

3. When you create sales order, mention WBSE in the sales order line item... So, revenue postings will derive PC from the WBSE itself

4. During Billing, by default, PC from mat master is derived in Sales order.. If you want, you can change it using substitution in 0KEL / 0KEM.. The PC derived in Sales order flows to Billing

Br. Ajay M