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Foreign Branch as company code or Profit center

Hi Gurus,

Our client has branches in across counties.

1. What are the challenges we face if we create braches as profit center instead of company codes.

Regards,

Ashok

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1 Answer

  • Best Answer
    Jan 19, 2017 at 01:41 PM

    Generally if the company code branches are treated as separate companies legally, then you should create separate company codes. As in your case,the branch is a foreign branch, it is definitely registered as a separate company in the foreign land. So you should create another company code. Setting up the foreign branch as company code will give be more options for reporting and operations.

    if the company code branches are treated as one company legally, then you should create one company code and separate Pcs representing each branch. It happens generally in cases, where all the branches are in same country. Here maintenance is less but the reporting and operations options will be less. Another prerequisite is, you need to ensure the new GL is active.

    In my opinion, you should go with separate company code.

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