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Former Member

Profit Center determination for Stock G/L accounts

Hello,

The scenario is as follows:

A single G/L account is defined in our system for Finished Goods. FI documents resulting from material movements are posted to this account in PCA, i.e. table GLPCA shows material document numbers in the reference document field along with the corresponding movement types for this account.

There are a large number of materials with Profit Center 10000 (Industry General) defined in the material master record. All postings to the G/L in question are currently being made against the Profit Center defined in material master. There are also two other Profit Centers defined in the system; 10001 (Industry Motors) and 10002 (Industry Others). The business requirement is that all materials are common to both segments, but the Profit Center should be determined from the sale, i.e. if a material is sold to an Industry Motors customer the Profit Center should be 10001, otherwise it should be 10002.

For the revenue G/L account which is hit at the time of posting of the invoice, a substitution has been configured that determines the appropriate Profit Center from the division specified in the invoice; there are two divisions for Motors and Others respectively. For the stock G/L however, all postings are made to Profit Center 10000 as defined in the material master record.

Since the stock G/L will show postings from all goods movements, including GR, initial entry, GI for delivery, etc., and all materials are common, it is clearly not possible to completely segregate all postings to 10001 and 10002. For example, GR will always be posted to 10000 (General) as it is not known whether this should be in 10001 or 10002 till the time of sale. However, for sales movement type (Goods Issue delivery) at least, postings shoud be made to the appropriate specific Profit Center. For the remaining postings, the business applies a calculated ratio to the acumulated balance.

For the stock G/L, is it possible to derive Profit Center for outward goods movements based on invoice? For example, 1000 USD worth of stock is posted to the G/L in PCA with movement type 101 and Profit Center 10000. 200 USD worth of stock is sold under Motors and 400 USD worth is sold under others. Entries in GLPCA should be:

G/L Balance Profit Center Movement Type

31000000 1000 10000 101

31000000 200 10001 601

31000000 400 10002 601

So from this it is easily possible to determine that 200 USD worth of stock has been sold under Motors, 400 USD worth under Others, and 400 USD worth of stock remains unsold.

A solution for this is required. If anyone can think of any other way to accomplish this as well, please share your suggestions. Thanks!

Regards,

Khan

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  • author's profile photo Former Member
    Former Member
    Posted on Apr 22, 2011 at 07:53 AM

    Anyone?

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    • Former Member

      to arrive the profit center at a time of Goods Movment, select the cost center for Industry Motor before to that do the settings in OKB9 for the Cost element a default Profit Center for Cost center.

      Hope this helps u in resolve the issue.

      rgd

      YJ

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