Profit Center & Cost Center

[Former Member]

Hi

In my client, we have around 120 cost centers and 5 profit centers. Now 100 cost centers are assigned with this 5 profit centers. Remaing 20 cost centers are for common costs. Now in this 20 cost center we cannot assign any profit center. Now to get complete report in PCA level, how these cost of common cost centers will allocate to PCA.

Please let me know in details step by step.

Priya.

[Former Member · Accepted solution]

Hi,

I would suggest one option is create an extra profit center.

-->Create one extra profit center and assign to all remaing 20 cost centers.

allocate all the costs from extra profit center to 5 other profit centers at month end.

Thanks,

Rau

[Former Member · Accepted solution]

Hi Rau,

Can we use Dummy profit center for that common cost center?

How to allocate cost -- Assessment or Distribution in month end?

In case of distribution, is there any FI impact?

Priya

[Former Member · Accepted solution]

Hi,

i would suggest create one seperate profit center and assign this to all remaing 20 cost center.

allocations(Assessments and Distribution) is only part of CO no impact on FI.

you have to create Assessment or distribution cycle based on your requirement and attached segments,create 20 cost centers are group and assign in segments. you can allocate postings from profit center to other profit center,based on percentage or fixed amounts and variable portion using SKFs.

check this link.

http://help.sap.com/erp2005_ehp_03/helpdata/EN/eb/13811243c411d1896f0000e8322d00/frameset.htm

Thanks,

Rau

[Former Member · Accepted solution]

Hi rau,

Thanks for reply.

Please let me know, costs of 20 remaining cost centers are the admin related cost, which has no relation on the Existing Profit Center.

Now what would be the suitable solution for that? How can we send cost from this 20 cost center to other cost centers.

Priya

[Former Member · Accepted solution]

Priya,

You allocate costs using assessment or distributions in cost center accouting.

how you(client) wants to allocate costs from 20 admin cost centers to other 100 cost centers?what basis?e.g. perncetage or fixed value or variable portion using SKFs.

if there is no relation to existing profit center,you can create one new profit center and assign this particular profit center to all 20 admin cost centers.

at month when you allocate costs from 20 admin cost centers to other 100 cost centers,your new profit center value is zero.this is because profit center assignment in cost centers.

Hope this helps you.

Thanks,

Rau