Defining Dimensions,Profit Centres

[Former Member]

Dear All,

Actual Scenario is there are basically three main divisions which is as explained as

1) Refrigeration Division -

---

> Main Division #1

Compressor----

---

> Sub Head #1

Product # 1----

---

> product range

Product # 2----

---

>

Product # 3----

---

>

2)Service Division -

---

> Main Division # 2

CNC Machine #1------> Profit Center

CNC Machine #2------> Profit Center

3) Projects----

---

>Main Division # 3

I want to use Dimensions for this scenario

Pls take a note that I know how to define dimesion and profit centers , i am just not getting how to linked G/L accounts to Profit center i want to link seperate different G/L accounts to each of the profit center and while doin to transaction it should go to that particular accounts.

Is it possible or else there is any better way pls suggest

thnkx

satish

[Former Member · Accepted solution]

Dear

In 2007version, only the account defined as Sales\Expenditure can have distribution rules. And this can be defined in the chart of account. Also it can be overwritten by the document row level settings.

Hope it helps.

Best Regards,

Xiaodan AN

[Former Member · Accepted solution]

Hi,

Thankx for the valuable reply i have done the same

now when i doin the postings. Suppose.

400000- sales revenue account (control accounts) linked to trading division ( linked to Trading's distribution rule ) .

400010-Sales Revenue Account linked to manufacturing division (linked to manufacturing's distribution rule ).

Whenever i am doin the postings it is direclty affecting only control accounts which is 400000 , even if i do the transaction for the manufacturing profit center still it takes control accounts not the other accounts (400010)

I dont know whether i am following the wrong procedure or not pls do suggest.

thankx

[Former Member · Accepted solution]

Hi Satish,

Please clarify whether the G/L's are set by WareHouse or Item Group or Item Level.

I feel that your System takes the default Sales 'Revenue Account' that is defined in the Administrattion -> Setup -> Financials -. G/L Account Determination, 'Sales Tab'.

Say you have two division of items say trading division and manufacturing division.

1. Go to the item master of items under Trading Division. Go to the 'Inventory' Tab. Select 'Item Level' in 'Set G/L Accounts By' .

2. Now from the form settings enable all the G/L accounts and make them Visible and enable.

In the ''Revenue Account' select G/L '400000'

Repeat steps 1 to 2 for manufacturing division except that the G/L account to be '400010'

Now see the Journal Postings.

[Former Member · Accepted solution]

hi Sridharan,

I have defined the G/L Accounts of Items by "Warehouse"

I have followed u r steps but when i select "Set G/L Accounts " for item as "Item Level" then its system asking me to defined Seperate Item Group for that Item and also for each of the Item i need to defined seperate Item Group so It will be very much Diffficult cause then If there are 1000 items then i need to define 1000 Item Group which is very tedious and not logical

can u pls provide me u r mail ID so that reply will be faster cause I need this urgently

we can come to chat also my Id is satishtale.sap at gmail

[Former Member · Accepted solution]

Hi Satish,

I understood that G/L are set by "Warehouse"

Now You can have a seperate FG WH for Traded and Manufactured Items.

In the Wareholuse SetUp window, Click on the Accounting Tab,

Now Set the 'Revenue Account ' to 400000 for the 'Traded WH'

Now Set the 'Revenue Account ' to 400010 for the 'Manufactured WH'

Regards

[Former Member · Accepted solution]

HI Sridharan,

Now just let me conclude whatever i have understood, If i want all the profits center with seperate G/L Accounts and posting should go to respective accounts then i need to define that much of "Warehouse in the system" and linked each of items let say RM, FG or any to particualrs profit center's wareshouse.....................................

Now one thing i am not clear In my case while defining profit centers is that.......I had

Refrigeration Division............ (Main Head)

Compressor -

---

(Sub Head )

Product # 1---(Product , Main Profit center)

Product # 2---(Product , Main Profit center)

Trading----

---

(Sub Head )

Product # 1---(Product , Main Profit center)

Product # 1---(Product , Main Profit center)

Valves -

---

(Sub Head )

How should i proceed in defining profit center pls suggest or pls tell me how upto how much hirarchies we can defined

thnkx

[Former Member · Accepted solution]

hi sridhran ,

Also i have marked G/L accounts visible and active through form setting on every marketting docs I am able to change the control acconts only in Sales Process and not able to change in Purchase Process is this correct or is there a mistakes in procedure which i am following

[Former Member · Accepted solution]

HI Sridharan,

Now just let me conclude whatever i have understood, If i want all the profits center with seperate G/L Accounts and posting should go to respective accounts then i need to define that much of "Warehouse in the system" and linked each of items let say RM, FG or any to particualrs profit center's wareshouse.....................................

Now one thing i am not clear In my case while defining profit centers is that.......I had

Refrigeration Division............ (Main Head)

Compressor

(Sub Head )

Product # 1---(Product , Main Profit center)

Product # 2---(Product , Main Profit center)

Trading----

---

(Sub Head )

Product # 1---(Product , Main Profit center)

Product # 1---(Product , Main Profit center)

Valves -

---

(Sub Head )

How should i proceed in defining profit center pls suggest or pls tell me how upto how much hirarchies we can defined

Also i have marked G/L accounts visible and active through form setting on every marketting docs I am able to change the control acconts only in Sales Process and not able to change in Purchase Process is this correct or is there a mistakes in procedure which i am following

[Former Member · Accepted solution]

Hi Satish,

HI Sridharan,

As of SAP b1 is concerned, there is no chance to have tree structured(Hierarchical) Profit Centres.

SAP Profit Centres are linear.

For Ex, in your case you want to have

Main Head

--- Sub Head1

-- Product #1

-- Product #2

--- Sub Head2

-- Product #3

-- Product #4

This way of defining in tree structure is not possible.

To do so, you can create a dimention called 'Product' and have the following values in Profit Centre

MHSH1P1 - (Meaning Main Head, SubHead1, Product 1)

MHSH1P2 - (Meaning Main Head, SubHead1, Product 2)

MHSH2P3 - (Meaning Main Head, SubHead2, Product 3)

MHSH2P4 - (Meaning Main Head, SubHead2, Product 4)

But you can produce Profit Centre Report in Hierarchical way by creating a new report template in

Financials -> CostAccounting ->Cost Centre Hierarchy

Please have look in to the Expert Empowerment Session on

'Profit Centres' on Friday 24 August 2007.

I would also send you the PDF of the Expert Empowerment Session to your mail.

[Former Member · Accepted solution]

hi Sridhran ,

the pdf documents is very useful............

I have created the profit center the same way which u have suggested and also defined the COST CENTER HIRARCHIES

as per our requirements

My worry is how does the templates

hirarchies will get linked to profit center we have created cause once i run the profit center report by templates wise selection then it should show the correct postings to each to branch hirarchies.

So bottom line is how to linked profit centers to cost center templates hireacrhies and which procedure should be followed to do the correct posting / transaction.

thankx

[Former Member · Accepted solution]

hi Sridharan,

I have created almost 10 -12 profit center s also created cost center hirarchies and linked each profit center to its child hirarchies.

Now i can linked only one G/L accounts from one dimension to only one profit center and if i want to linked each of the profit center to defferent G/L accounts then how to do it?

Or Is It a better way or solution to link Each of the profit center to Different G/.L Accounts.

Pls reply