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Create sales org as cost centre

Govind_Sharma
Participant
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Hi Experts,

I am setting up new org structure and an org unit as profit for selling scenario.

During setup of sales org unit, system showing the error message that this org unit is not flag as cost center.

Issue before consideration : Why system need org unit to be assigned as cost centre for sales org unit or sales unit?
Sales are revenue postings only, there is not cost postings are expected.

Worst case scenario : Assume we have to assign this as cost centre

If we assign the org unit as cost centre then is there any possibility to control this cost center from business transaction postings ?

(Without impacting profit centre assignment)

Kindly let me know your thought on this

Thanks in advance

Govind Sharma

Accepted Solutions (1)

Accepted Solutions (1)

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Hi Govind,

I try to answer your question, even though I miss little bit of the context.

You create a company, below the company a business residence and below that you create directly profit centers. As long as you your business residence is below a cost center or a cost center, the system does not complain. Even when I enter a cost center/ reporting line unit below the "only profit center" the system does not complain. I have seen org structures, where you have a complex profit center reporting structure below the company and business residence (so you have here a cost center above) and all the cost centers and employees in a different structure.

I also attach below a structure, where I tested out to use Profit Centers only, and I could not see issues. Can you maybe clarify your concrete scenario? Where is the Profit Center, where are your Cost Centers and employees?

Best regards

Marlene

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Maybe here an additional comment:
you can also define "free profit centers", which have are not below an org unit and it works as well.

So maybe you need to give a more detailed explanation, what do you plan.

Best regards

Marlene

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Hi Govind

Did you test my approach?

Did it work?

Best regards

Marlene

Answers (1)

Answers (1)

thomas_meder
Employee
Employee
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Hello Govind,

I agree with you - from a purely functional point, it would be sufficient to assign the cost center at sales organization level, not below. Perhaps it is caused by the assumption that you might execute projects on this sales org which might cause costs from there (write-offs for hours and so on).

But good point.

Perhaps it comes from the assumption that there are employees assigned to a sales unit (doing sales :-)) - and they receive salaries...

I will try to get an "om designer" to give a comment on this feed.

Best regards,

Thomas

Govind_Sharma
Participant
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Hi Thomas,

Yes, similar way there may be possibility to consider the cost of goods sold posting.

However i have checked that system consider the profit centre linked to warehouse and not from sales org unit for goods outbond entry.

It will be great if SAP can provde some clarity on reason \ logic to keep sales org unit assigned as  cost centre inaddition to profit centre.

Thanks

Govind Sharma