I need info urgently on controlling

[Former Member]

HI SAP experts,

Can you assist in the following. The customer has one plant an done COCD.

My question is as follows:

I want to create 2 plants for the operations for two regions ( although the customer has one) and in the cost center we set up the functional area such as Production

• Administration

• Sales and Distribution

• Marketing

• Research and development

This way the customer has report of the costs by regions level and also at the functional level.

If this possible then can any one help how the CO structure to be and the reporting.

Is there any better way ?

I hope my question is clear.

[Former Member]

Hi,

To begin with i assume that Regions (Plants) are created as Profit Centers

In the given situation. how u will be able to assign the cost centers to profit centers. If this cannot be done then the profitability of each of the plant cannot be derived.

In the normal circumstances. It is always better to create two cost center groups (one for plant 1 and another for Plant 2).

Under each of the Cost center group, define cost centers as you mentioned earlier functionally.

By doing this, for every Plant (Profit Center) you will be able to capture the cost function wise and you will have clear visibility of the profitability of the organisation.

Hope this will clarify your issue.

Award points if the reply satisfies you.

Best Regards

surya

[Former Member]

Hi,

You can setup profit center for each plant or if you want more devision in plant itself then you can use Profit center for that devision and Profit center group for plant.

As you have defined cost center functional area wise so you can take report, plant wise and function wise for each plant.

Regards,

Vinod

if useful assign the points.