PL with profit center

[Former Member]

Hi,

May I know why all profit & loss account must have profit center? System will auto assign dummy profit center when the p&l account has no profit center assigned.

1 So why p&l account must have profit center?

2 Why is the configuration saying that p&l account must have profit center?

Thanks

[narasimhulu_konnipati]

The major reason for asking Profit center in P/L Account is

-> To know the Gross profit / Net profit of the Company code / Plant at any point of time. Until unless you have assigned the PC directly or indirectly, you can't measure the Profitability analysis.

Expert Monika has explained you the process in earlier thread, you can do accordingly

Hope you understand

Thanks

[Former Member]

Hi,

Thanks konnipati.

But I still not sure of this.

Where is the configuration saying that p&l account must have profit center?

[narasimhulu_konnipati]

Dear,

If it is a classic GL, use Cost center to update the default PC.

At any point of time, User can able to change the default PC at transaction level.

Ex:- Cost center XYZ is defaulted with PC 123

When user is posting a transaction to CC XYZ, he can change the default PC from 123 to XXX.

The derivation is : Business area -> Profit center -> Cost center

BA updates in PC

PC updates in CC

Thanks,

[Former Member]

First check which profit center you have assigned to Cost center

[Former Member]

Hi,

for PL, profit center is deriving from cost center. system will assign dummy profit center in the case no profit center is derived.

may i know where is the configuration saying that if no profit center derived, then use dummy profit center? 0KE5?

[narasimhulu_konnipati]

Yes, it is 0KE5 (ZERO)

Thanks

[Former Member]

For Each entry in SAP system require atleast one Object where the entry will reflect. First make the Profit Center Mandatory in the Extended Document Splitting. And Create the Profit and Loss GL as a cost element in CO. System will start asking for cost centers for expense gl and profit center for Revenue and balancesheet gl

[Former Member]

Hi,

I am asking on classic. not new GL.

I just would like to know

1 Why p&l account must have profit center? System may still assign dummy profit center if it there is none.

2 Where is the configuration saying that p&l account must have profit center?