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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