cost centers for reveneue

[Former Member]

Hi,

can we use cost centers for revenues and cost both?

Thanks!

[Former Member · Accepted solution]

You can only post revenues statistically only. It is not possible to post real postings.

[Former Member · Accepted solution]

Thanks!

but what does statistical means here?

[Former Member · Accepted solution]

Statistical means it will not be included in the FI/CO recon.

It will also be displayed on its own page in the cost centre report.

[former_member182098]

Hello,

In general, Cost Centers are not meant for revenue posting. They are meant for expenses. However, you can allow them by your cost center category. But, this is not industry best practice.

Cost center, WBS element and Internal Orders are real CO objects, where the real postings will flow.

Profit Center is always statistical only (statistical means just for information postings) - These postings are like shadow postings.

When you give two real CO object for posting like Cost Center and Internal Order (Real), then real postings will go to Internal Order (Real) and statistical postings will flow to Cost Center and the profit center assigned to Internal Order. Cost center will modify itself to a real or statistical based on the other CO object given.

Hope this is clear.

Regards,

Ravi

[Former Member]

Hi,

our requirement is:

we have projects (rnd, customer, academic, other internal) and we are non profit making organization i.e. basically rnd organization.

for all expenses on projects we have configured cost centers and cost elements.

what would you suggest for revenues that will generate out of customer projects and academic projects.

some customers might get into bad debts also.

thank!

[former_member182098]

For revenues, please activate profit center accounting.

Assign all the profit centers in the cost center masters.

Create the revenue elements are cost element category 11. (KA02)

Please see 1KE4 (if there any objects that are not assigned to profit center)

Always check KE5T report to see the difference between FI and PCA.

If you are going with PCA, make settings in 3KEH and 3KI. Use OKB9 (Substitution rules) and OBBH.

In OBA5 make message number KS (application area) 096 (message number) as mandatory.

Please let me know if you have specific questions.

Regards,

Ravi

[Former Member]

I assume that you are not using the SD module?

In that case there is nothing stopping you to create the cost elements as type 1, costs, rather than as type 11, revenues. Type 1 cost elements can post freely to cost objects.

You can then use a cost element group to group revenues apart from the costs for reporting purposes. The fact that it will be credits posting to the account won't have any influence on anything.

If you use SD, the sales accounts have to be either 11 (revenues) or 12 (discounts)

[Former Member]

thanks!

i'll try this and if i have any questions i'll ask