reg cost center and profit center

[Former Member]

Hi,

i had a doubt, whenever i perform a material related processing, there is option to enter PROFIT CENTER , to which it has to be charged, but this profit center may have more than one COSTCENTER, then how can we distinguish to which COSTCENTER , this material has to be charged.

please guide me in getting solution.

Regards.

venkat.

[Former Member · Accepted solution]

Hi

Profit center may be a branch, or a department or a location or a particular product etc. So in profit center there may be many cost centers. Profit center takes the material and uses the material in that center. It means while materials are purchasing you can say this is related to a particular profit center. Then profit center issues that material to the cost centers which is using the material for production or for any other purpose i.e. while issuing the material for utilisation you have to specify the cost center.

Radha

[Former Member]

hi venkat,

In material master there is a option in costing 1 ie profit center , if u enter the profit center, then when ever u make the entry related to material it will go to the particular profit center.

hope its clear

if it is useful pls assign points

regards

avudaiappan

[Former Member]

Hi chinnaswamy,

i know that material master will charge to particular profitcenter, but i want to know that to a profitcenter we will have many number of cost center, to which costcenter it will charge.

[Former Member]

Hi,

Any material can only be assigned to a profit center. When this material is issued to a cost Center, in MIGO you have mention the cost center to which you have issued this material. This is the only way you can find to which cost center the matrial is issued.

bye,

Ramesh

[Former Member]

hi venkat,

When issue the materials on the basis of production order. Here production order is cost object , so it will accounted in production order. when u r issue the consumables then it will go to the particular cost center.

hope it is clear

regards

avudaiappan