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Apr 26, 2018 at 12:38 PM

Profit Center Hierarchy - Cons of too many profit centers

711 Views Last edit Apr 27, 2018 at 08:49 AM 2 rev

Hello,

My organisation is moving from 20 year old SAP to SAP Hana. We are having constant debates around the granularity of our standard profit centre hierarchy (i.e. what should be the lowest level to set up PC). The Head Office wants to have as less number of PCs as possible for easier Master Data maintenance whereas Business line managers want to have their own PC, which may result in thousands of PCs. One of their arguments is revenues cannot be posted in cost centres (whereas we are able to do it in our old system). How valid is their argument? What are cons of having too many PCs? Thanks in advance. Regards