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author's profile photo Former Member
Former Member

PROFIT CENTER BALANCING

Hi,

Our profit centers are defined as balancing entities,and we are to generate trial balance and other financial statements per profit center.

Whenever a transaction that debits PC a and credits PC b is done neither profit center A nor B would balance because both PCs contain a single leg of the complete transaction thereby creating unbalanced trial balance for each profit center.

Is there a standard way by which sap handles such balancing entities ? and how can i go about it ?

Regards

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 04, 2007 at 02:11 PM

    Hi

    In the scenario you have mentioned you can use PROFIT CENTER Clearing A/c concept. As and when two or more different profit centers are derived system will automatically post internally to PROFIT CENTER Clearing A/c. Let us take that you are passing the following entry.

    Courier Charges A/c Dr 1000 101009

    Rent A/c Dr 2000 101015

    Payable A/c Cr 3000 101015

    Since two different profit centers are getting you cannot draw TB for 101009 or 101015.

    In this scenario system pass entry like this.

    Courier Charges A/c Dr 1000 101009

    Rent A/c Dr 2000 101015

    Payable A/c Cr 3000 101015

    PRCTR Clrg A/c Cr 1000 101009

    PRCTR Clrg A/c Dr 1000 101015

    Now the balance is zero at 101015 and 101009. this PRCTR clrg a/c is zero at company code level. Like this you can draw TB at any given point of time online by using PRCTR clrg a/c.

    Hope this clarify your doubt.

    All the best

    Regards

    Brahmam

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