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Former Member

profit centre

hi,

sap gurus,

can any body throw some light on

business area configuration steps

and

profit centre configuration steps

regards,

balajit.

09990019711.

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Apr 01, 2008 at 12:14 PM

    Dear Balaji,

    Business area is one of the organisational element in FI so you ned to define that in the Enterprise sturcture and in same area you need assign.

    Definition of Business area.

    IMG path is SPRO>Enterprise structure>definition >Financial accounting>define Business area and Maintain consolidation business area.

    Assignment of Business area.

    In FI

    IMG path is SPRO>Enterprise structure>Assignment >Financial accounting>Assign business area to consolidation business area.

    In SD

    IMG path is SPRO>Enterprise structure>Assignment >Sales and Distribution>Business are account assignment.

    Regarding Profit center

    To create profit center Ttransaction is KE51

    Go through this path you find all the configuration settings related to the profit center.

    SPRO>Controlling>Profit ceter accounting

    I hope it will help you

    Regards,

    Murali.

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  • author's profile photo Former Member
    Former Member
    Posted on Apr 01, 2008 at 12:39 PM

    hi balaji,

    Configure the SAP Business Area

    The functions of business area is to create balance sheets and profit and loss statement below the company code level. It functionality can be duplicated using Profit center accouting.

    OX03 - Creation of new Business Area

    New Business Areas can be created anytime in the Enterprise structure in the IMG. However, in the year of creation, no comparison can be done with the previous year data as the Business Area did not exist in the previous year and there are no postings in the previous year.

    After create the new Business Areas, new G/L accounts should be created for :-

    Sales

    Cost of Sales

    External Process Cost

    Consumption

    Material Change

    Purchase

    Cost of Difference for Production

    Factory Output for Production Order

    Next create a default account assignment to maintained the link for cost center and business area.

    Transaction OKB9

    Enter the Company Code and Cost Element

    Cocd Cost elem. Acct assignment detail

    Enter the details as per business area/valuation area

    BA Cost ctr

    Use the following business process to create and maintain Profit Centers.

    A profit center in the Controlling area of SAP is used to track and report revenues and profitability from multiple activities associated with it.

    Profit centers in SAP are equivalent to Department Numbers in the Classic system Chart of Accounts.

    Profit centers are organized into a hierarchy. All cost centers, internal orders, and work breakdown structure (WBS) elements will be assigned to profit centers. In cases where cost centers are assigned to profit centers, revenues are posted to profit centers and cost centers, whereas costs are posted only to cost centers.

    If existing cost centers, WBS elements, and internal orders are to be transferred to a new profit center, the request should be sent to the CAO Control section with the number of the new profit center so that they can make the changes.

    Procedure

    The Assistant Comptroller receives a written request.

    If the request is to create a new profit center, go to Create new profit center.

    If the request is to change a profit center, go to Change existing profit center.

    Note: If a profit center is to be created or changed, inform the Fund Center Assigner in the Office of Budget and Financial Planning (OBFP) so that OBFP can decide whether a new funds center is required.

    Create new profit center

    All profit centers for new departments, labs, and centers are reviewed and approved by the Assistant Comptroller, CAO, and the Assistant Provost for Administration.

    The Assistant Comptroller sends approved requests to the Assistant Accounting Officer in the CAO Payroll Section.

    The Assistant Accounting Officer creates the new profit center using the system task Create Profit Center Master Record.

    The Assistant Accounting Officer also creates a corresponding department number in the department number table in the classic system.

    Authorization needs should be communicated to the Authorization Configurer because reporting from certain profit centers are restricted to certain user groups. For example, reports for a department's profit center may be restricted to the users in that department. Go to Review profit center.

    Change existing profit center

    The Assistant Accounting Officer makes the necessary changes to the profit center using the system task Change Profit Center Master Record.

    The Assistant Accounting Officer also changes the department in the department number table in the classic system.

    Review profit center

    Review the profit center using the system task Display Profit Center Master Record.

    After reviewing the creation and/or changes to the profit center, the Assistant Accounting Officer sends confirmation to the requester that the profit center is operational.

    End procedure.

    regards

    sadhu kishore

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