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Jul 07, 2020 at 09:46 PM

Correct setup of profit centers and customer fields for balance sheets, P&L and financial reporting​


I'm working with a company that is doing a greenfield implementation on S/4HANA, starting with Finance. Their legacy SAP system has been in place for over twenty years and has never been converted to NewGL. They have to produce financial reporting/balance sheets at a Plant and Segment level, and they require P&L at class, plant and segment levels. With their existing system, they use Business Area for plant, segment for their segments and Profit Centers for class. There are currently four different plants, and products produced overlap between plants.

As Business Areas are operating under a dark cloud, the project architect has recommended using Segment to represent the plant, profit center group to represent classes, and hierarchical groups of classes to represent segments. This makes our Controlling management uneasy because we will have multiple profit centers for the same class. It also creates more work for extending materials to a new plant. Today, if we want to extend a material to a new plant, we just copy the masterdata. With what the architect has proposed, we will also have to create a new profit center and map it in the hierarchy.

Is there a better way to do this? Should we be looking at adding a customer field or something for plant and using it for document splitting?

Examples of segments are Cans, Boxes and Bags. Examples of Class are Steel Cans, Aluminum Cans, Cardboard Boxes, Plastic Boxes, Paper Bags, Plastic Bags. There is a hierarchical relationship: Segment -> Class.