New GL - Profit Center Trial Balance

[sameer_gupte2]

Hi Friends,

I have a question regarding profit center trial balances in new GL. We have 1 company code and 3 profit centers - 1 for HO and 2 for branches. We are able to draw up profit center-wise trial balance using document splitting. We have one scenario wherein during asset acquisition, we are posting the acquisition transactions to HO profit center. Afterwards the asset is being transferred to one of the branches say B1. Now we can change the cost center in the asset master so that the depreciation is posted to profit center B1 through cost center B1. However, the asset a/c debit and vendor a/c credit is still being shown in the HO profit center. How to change this so that the asset a/c debit and vendor credit is seen in profit center B1?

Thanks & Regards,

Sameer S Gupte

[former_member198650]

Hi Sameer,

Why are you capturing the assets initially H.O. instead of Branch?  Please clarify us.

Regards,

Mukthar

[sameer_gupte2]

Hi Mukhtar,

This is because initially the organization does not know in which branch the asset would be used. Also, sometimes, asset is purchased for 1 branch, but the need of the other branch means that it needs to be transferred to that branch.

Thanks & Regards,

Sameer S Gupte

[former_member198650]

Hi Sameer,

Then why do you want to change the profit centre for vendor. Because the at the time of purchase you have booked to H.O., then liability arises at H.O. only.

If you want to come profit centre as B1/B2 for the vendor, then you have to transfer the vendor balances between profit centres.  The accounting entry will be:

Vendor A/c Dr. H.O.

Vendor A/c Cr  B1/B2

However, at the time of asset transfer to branch, the asset account will nullify.

The accounting entry for asset transfer will be:

Asset A/c Dr - B1/B2

Asset A/c Cr - H.O.

Regards,

Mukthar

[sameer_gupte2]

Hi Mukhtar,

Which transaction codes to be used to post the above transactions?

Thanks & Regards,

Sameer

[former_member198650]

Hi Sameer,

For asset transfer you can use ABUMN and for vendor amount transfer use F-51(Post with clearing).

Regards,

Mukthar

[sameer_gupte2]

Hi Mukhtar,

I tried ABUMN before, but system is not allowing me (both the asset numbers would be same for me). Also, there is no profit center field in ABUMN.

Thanks & Regards,

Sameer

[sanilbhandari]

Hi

For asset transfer you need to create a new asset for the location change. You can than maintain the correct cost center in the reciveing asset. Alternatively create manual posting accounts for every asset grouping and pass a JV between these manual gl accounts.You cannot post directly with a profit center for asset subledger

You can also follow a similar approach for vendor to vendor posting since you cannot post directly to a profit center for a vendor to vendor posting unless it is a special gl posting.

Thanks & Regards

Sanil Bhandari