Profit center determination

[Former Member]

Hi,

Can anyone help me understand how the profit centers are determined for the payables and receivables, customer vendor invoices line item postings in theory it says it is determined form the offset line item? can some one provide me with an example

One kind is from 3KEH table and if there is no profit defined there from where does the system picks up the profitcenter.

Thank you

[former_member695461]

Hi Nivi

The correct answer is as follows.

There is a offsetting account ( revenue in case of customers) and (expense in case of vendors) which would normally carry a profit centre either directly entered or derived from cost centre. Now the customer or vendors would get this profit centre from their offsetting line when you run balance sheet adjustments in period end closing. There are two transactions. F.5d- it calculates all the transaction (customer/vendor line items) to be stamped with appropriate profit centre from offsetting line item.

T-code F.5E posts the line items with profit centre. The program use is SAPF180.

Hope this helps.

Thanks

Sanjeev

[prasad_yarra]

All profit center postings are statistical.

We don't post anything to Profit Center directly. Profirt center is derived from CO object.

When we define Cost Center we assign Profit center to the Cost center. If a transaction is posted to that cost center Profit center assigned to that cost center gets posted.

Likewise all cost objects are assigned with Profit Center. If by anychance any cost Object is not assigned with profit Center the transaction is posted to Dummy Profit Center by system automatically. This is necessary for reconciliation between FI and CO. We have to settle dummy profit center transactions periodically to the correct Profit center.

If you run Profit center assignment monitor, you will find which cost object is not assigned with profit center.

Hope you are clear about Profit Center assignment.

Yarra Prasad

[viveck24]

Hi,

Other side of the item generally is either Revenue (in case of customer) or expense (in case of vendors). If an invoice is raised for two line of business e.g. Color TV and Air Conditioner for 100, then customer line item will show Profit Centre Color TV and Profit Centre Air Conditioner as two line items (provided splitting is activated).

Hope this helps.

Regards

Vivek

[Former Member]

Thanks for you response Vivek!

you mean if there is a vendor(v100) invoice for $100, the account entry - Dr. V100(vendor), Cr. Expenses a/c and the vendor line item will show a profit center that will be taken from the Expenses account..

My question is if the vendor or customer line item shows the profit center then from where does the profit cetner comes from?

For example of the vendor line items gets PCtr from expenses where does the pctr connection comes from and if the customer line items has profit shows and from which part of the revenue the profit center connectio comes from?

If it is a manual gernal entry do we need to manually enter the profit center..

Thanks

[Paulo_Vitoriano]

When P&L account is defined as a cost element it requires CO account assignment, for example Cost Center, Order, WBS. If PCA is active (as in your case) the Profit Center is inherited from the CO object, for example from Cost Center, Order, WBS... that you can easily check looking into respective master data of Cost Center, Order, WBS.