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Former Member
Aug 23, 2007 at 08:37 AM

Relationship between profit centers and cost centers

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Hi,

I have two profit centers - P1 and P2.

We want to define our cost centers- Finance , procurement and Production.

Option 1

1) Should we have 1:N relationship between profit center and cost centers.

That is , for profit center P1 , the cost centers will be Finance-P1, Production P1 etc.,

For profit center-2 , the cost centers will be Finance-P2, Production-P2.

Is it the right way of defining cost centers ?

Option 2

2) We maintain only unique cost cost centers Finance and Production.

Then how would we make postings to a cost center, say, Finance, to two different profit centers - P1 and P2 in some proprotion ?

Is this the right way of doing things in SAP?

Request ideas / recommendations

Thanks,

Manohar