Project Systems: Profit and Cost Centres

[Former Member]

Hi

When maintaining a WBS element through transaction CJ02 or CJ20N for example; it is poossible to link a profit centre, ressponsible cost centre and requesting cost centre to each WBS element.

My question is: When cost gets incurred against a WBS element the profit centre gets updated with the cost as well. However, the cost centres (responsible and requesting) do not get updated. Is there any automatic effect on these cost centres (such as is the case with profit centres)?

I know that the requesting cost centre will be the cost centre allocated to AUC's assigned (if applicable) and that to get cost onto the cost centre a settlement rule must be maintained. What therefore is the use of having responsible and requesting cost centres assigned to a WBS apart from this?

[Former Member · Accepted solution]

Hi

Cost center and WBS elements are both cost objects hence at a time real posting can happen to only one of them. Since WBS elements are getting debited , it will not simultaneously debit a cost center. However profit center it is not the case , hence the data flow to the profit center happens as an when a posting is done to WBS element and also when WBS is settled to cost center then also there will be a posting to profit center.

Anand

[NathanGenez · Accepted solution]

excellent answer