Projects assignment with Profit Center

[Former Member]

Hi all of you,

We have lot of customer projects for which we are going to implement Project Systems. Actually, I thought of that for each Project I am going to create one Profit center which is to be assigned with WBS element means 1:1 relation between Project and the PCtr. But my client is asking that why we required the 1:1 relation since the project may closed once it is completed. My previous experience is 1:1 relation only. My question is, shall we able to take Profitability report for WBS element under profit center or not.

Please advice me what is the best practice i.e. 1:1 relation or N:1 ('N' no.of projects assigned to one PCtr)

Thanks & Regards

Ramki

[Former Member]

Hi,

It will depend on How customer wants to see the profitability reports.

If there are Divisions/ business lines/product lines having few projects under them , then N:1 i.e 'N' no.of projects assigned to one PCtr will be beneficial.This will give reports according to Divisions/ business lines/product lines .

Regards,

[Former Member]

Thanks for your valuable reply Amit.

As of now we have Business lines (Business Segment), under the business lines we have no. of projects. In this scenario you mean to say that better to follow N:1 relation.

Actually, I thought of that Business Segment = PCtr Group to take profitability at Business line level and the projects will be Profit centers (1:1) under the PCtr group.

Can you please give me clarity once again....

Thanks & Regards

Ramki

[Former Member]

Hi,

Yes. This also can be done. profit centre accounting gives reports on Profit center groups as well as profit centers.

Give these options to customers and they can make a choice.

Regards,