Service Profit Center or an Allocation Profit Center

[Former Member]

Hello Gurus,

I would greatly appreciate your help on the following question. Points available.

I am creating profit centers according to product line. I have read in SAP's PCA 4.6c documentation that if you want to divide your company into profit centers according to product groups you can do so. I also read that it is often not possible to assign administration cost centers directly to a profit center. For example, the ACCOUNTING & FINANCE cost center is not directly related to the products sold. The documentation goes on to say that one might, for example, assign them to a <u><b>service profit center</b></u> or an <u><b>allocation profit center.</b></u>This profit center would then contain all the administrative costs which occur.

My question is this: <b>How would I go about creating this Service Profit center or Allocation profit center?</b> <u>Could someone give me a step by step approach to configuring this in the system?</u> Or is their a better way?

Thanks in advance!

[Former Member]

Hi

Here is what u can do

1) Identify all product PC's separately

2) Create PC's for service or admn or corp - link these PC's to either one or more CC's. If you wish to allocate all admn, finance and other cost centers costs on one single basis then have one PC mapped to these department else create as many as u wish

3) Similarly identify marketing related CC's and assign them to Marketing PC's if u hv - by this u take care of marketing costs

So if u hv broadly above three catg of PC's u r ensuring that manf costs are mapped, adm costs and marketing costs are also mapped in PCA. With PCA allocations for Adm and Marketing costs u can derive ur final Product profit center balances and meet the reporting requirements for PCA

At the month end - after all allocations, u should not be having any costs left in adm or corporate or marketing PC's

Hope the above clarifies - pls assign points

Let me know if further explanation is needed on this

[Former Member]

Hi Ashok,

If you are not sure of assigning the cost centers to a particular profit center. Assign them to a dummy profit center and do allocations to other profit centers as per the requirement.

[Former Member]

Hi United,

If you are not able to identify the Costs to a Particular Profit center, then you can give a Common Service Profit Center and make the allocation cycle in the PCA.

Regards,

Gangadhar

[Former Member]

Hello United,

I am not sure if I realized well your question. But if you want allocate one department or one cost center to a profit center, you must assign in the data base of the cost center (KS02), the profit center that you have created.

Regards,

Mary Jane

[Former Member]

Hi

Infact we have similar situation. as far as I know there is nothing like Service PC or Allocation PC. We have some naming convention by which we identify the service profit centers and allocation profit centers.

Thanks

Ashok

Assign points for useful answer

[Former Member]

Hello Ashok,

Thanks for your quick response. So are you saying that the cost centers (e.g Accounting & Finance, Marketing, HR, etc) in your scenario are <u><b>not</b></u> assigned to any profit centers?

[Former Member]

Hi

We have assinged the finance cost centers to Headoffice profit center.

thanks

Ashok