profit center

[Former Member]

hi,

1) may i know why cost center is subset to profit center? when amount charge to cost center, profit center also got posted.

2) why profit center is statistical?

3) if the category for cost element in ka03 is 11, it is directly posting to profit center. is this considered as statistical or actual posting?

4) profit center cannot be considered as co object. may i know why?

thanks

[Former Member · Accepted solution]

Hi, 1) Most probably yes. When profit center is assigned to the cost center, the costs captured in that cost center goes into the Profit Center as statistical values. Profit Center is a object in Profit Center accounting and has a seperate ledger. 2) The Profit Center gets the costs as statistical since Cost Center takes it as real. In the case of revenue, the revenue will ultimately goes to COPA as real. Hence, both costs and revenue in Profit Center are statistical. 3) Yes as exokaubed above. 4) Profit Center accounting is used to capture both costs and revenue to know the profitability of the department or investment center. The costs goes to the cost object as real values. Profit Center is not a cost object, since it is used to capture both revenue and costs. Trust this helps much! Cheers!

[Former Member · Accepted solution]

hi,

thanks for the reply.

your reply on point 2 caught my attention.

1 i notice if it is revenue (cost element category 11), it post to profit center. in this case, posting to profit center also considered statistical?

2 if it is revenue again, i post to both profit center and cost center also. in this case both also statistical?

3 how can revenue post to profit center can end up in copa?

thanks

[Former Member · Accepted solution]

Hi, 1) Yes. 2) Yes. it is . The Profit Center Accounting is statistical as a whole. 3) Yes. If you post revenue of cat 11 from financial accounting, you can see the warning message that the revenue has gone as statistical to Profit Center Accounting and not to the COPA. I do not remember this message. I will get you the no afterwards. Trust this helps much! Cheers!