Controlling are currency / Profit Center accounting currency - Approach

[Former Member]

Dear All Expsrts,

I am configuring CO Area where one company code is equal to one controlling area.

1 ) So what sould be be currency ideally ? 10 or 30 ? Company code currency or Group Currency ?

2 ) Same way in 0KE5 ( Profit Center Account - Controlling area settings ) which should be currency type - As I think if CoCd and Co Area is one to one relationship it should be 10 always. - Please correct me if I am wrong.

3 ) 0KE5 is it mandatory to keep valuation view as a profit center valuation or Legal Valuation ? What is difference between both and in which cases we can use each?

Expert guidance will be helpful on this.

Regards,

Revati Joshi.

Moderator: Please, avoid asking basic questions. Do some research before posting

[Former Member]

Dear Revati Joshi

In Your scenario.

Here you can give 10 currency type. means its company code currency & controlling area currency(also give 10 -same as company code currency.) in 0kE5) give - 20 (As a controlling area currency.)

Valuation view- give Legal valuation.

Regards

shankar

[Former Member]

Dear Siva,

Ton of thanks !

Regards,

Reva.

[Former Member]

Dear Revati Joshi

In the legal view goods movements are posted between profit centers at the sales price which was agreed between internal trading partners who produce a balance sheet/profit and loss statement independently.

In the profit center view goods movements are posted between profit centers at negotiated transfer prices which are used for internal profit determination and corporate management.

Regards

shankar

[Former Member]

Dear Siva,

Thank you for quick reply.

If I am dealing with a single company code and Goods Movement is between plant only, then what sould be valuation ?

Regards,

Reva.