Friday 21 August 2015

what is profit center accounting in sap co


PROFIT CENTER ACCOUNTING


This is used to view profitability division wise /product wise /location wise if business area is not use in FI

Idea scenario

                                                Company                     FI
                                                            |
                                                Company code            FI
                                                            |
                                                Business area               FI
                                                (Location)
                                                            |
----------------------------------------------------------------------------------------
|                       |                                   |                                               |
Steel                Cement                        Pharma                        Co-profit center
Division           Division                       Division                       Accounting
|                                                                                                           |
Product wise                                                                           Co profitability
                                                                                                Analysis

Option 1                                                                      Option 2
Hyderabad location                                                    HYD               BGL            MOM
            |                                                                       |                       |                   |
Steel Cement Pharma                                                  Steel                cement         Pharma

Profitability                                                                 Profitability Balance sheet

The advantage of profit center accounting is it derives profit center automatically though derivation rules.
A) In case of expenditure                               Tough cost centers
B) IN case revenues                                        Automatic account assignment
C) In case of balance                                      Though business area

Sheet it items (Applicable for option 2)
Eg:a) At the time of creation of cost center assign profit center

            Dept A-Assign profit center steel
   b) At the time of posting

wages a/c  Dr 500000             Dept A
   To Bank       500000
It updates cost center Dept A as well as profit center steel.

We have to create dunning profit center. At the time of posting, when there is no derivation rules, system updates dummy profit center. Transfer form dummy profit center to respective center. Create derivation rule so that future transactions will not go to dummy profit center. They will go to respective profit centers.

Set controlling area (OKKS)

Path :SPRO-Controlling –Profit center accounting-Basic settings-Set controlling area
Give the controlling area                     :BIL
Enter

Maintain controlling area settings: (OKE5)
(Follow through path )

Path :Up to base settings the path is same- Controlling area settings-Maintain controlling  area settings

Standard hierarchy                              :BIL
Select elimination of business  volume check box
Profit center local currency type         :Select 20 Controlling area currency
Select confirm button
Select store truncation currency check box
Save

Elimination of internal business volume

Purchase                                  Material no.                                         1 Profit center steel
Order                                       Vendor no.                  1234
|                                               Plant                            HYD
|                                               Profit center                Steel
|                                               Qty                              1 Kg
|                                               Rate                             100
Goods
Receipt

It should no take in steel profit center 100+100
It should take only one time

Create dummy profit center

Path :SPRO-Controlling-Profit center accounting-Master data-Profit center-Create dummy profit center(Tr code is KE59)

Double click on dummy profit center
Give the dummy profit center                        :BIL dummy
Select basic data button
Name                                                   :BIL dummy
Description                                          :Dummy profit center for BIL
Profit center group                              :BIL
Save

Set control parameters for actual date

Path : Up to basis settings the path is sameà Controlling area settings -Activate direct postings-Set control parameters for actual data (Tr code is 1KEF)

Select new entries button
From year                    :2008
Select Line items check box
Select online transfer check box
Save

Maintain plan versions

Up to activate the path is same

Plan version àMaintain plan version
Select version                          :0 Plan /Actual Version
Double click on settings for profit center accounting folder
Select new entries button
Year                                        :2008
Select online transfer check box
Select line items check box
Exchange rate type                 :B (bank selling rate)
Save
Press enter to save in your request

Define no. ranges for local documents

A)    At the time of creation of cost center –Assign profit center
Dept A-Assign profit center
B)    At the time of posting
Wages A/c                   500000            Dept A
            To Bank          500000
When there is no derivation rule –It updates dummy profit center
Transfer from dummy profit center
            To Profit center steel

No FI document will be generated
No co document will be generated once profit center document will be generated (local)

Path :SPRO-Controlling-Profit center Accounting-Actual postings-Basic settings: Actual –Define number ranges for local documents (Tr code is GB02)

Select maintain groups button
Select actual document from direct posting with GB01 check box
From the menu select interval àMaintain
Give the company code                      :BIL
Enter
Select interval button
Year                                                    :2008
From no                                               :1
To                                                        :100000
Enter and save
Press enter to save in your request
Select back arrow
Select planned doc.with direct posting with GB01 check box
Form the menu select interval maintain
Give the company code                      :BIL
Enter
Select interval button
Year                                                    :2008
From no.                                              :100001
To no.                                                  :200000
Enter and save

Creation of profit center:

Path :Accounting-Controlling-Profit center accounting-Master data-Profit center-Individual processing-Create (Tr code is KE51)
           
Give the profit center                          :Steel
            Select master data button
            Analysis period to                               :01.04.2008 to 31.12.9999
            Name                                                   :Steel
            Long text                                            :Profit center steel
            Person responsible                               :Mr A
            Profit center group                              :BIL
select activate button (Shift+F1)
           
            One more profit center

            profit center cement
            select master data button
            name    :Cement
            long text                      :Profit center cement
            person responsible       :Mr B
            profit center group      :BIL
            select activate button
           
            Create account groups

            up to master data the path is sameàAccount group create (Tr code is KDH1)

            Give the account group name                         :PLITEMS ( Profit & Loss)
            Enter
            Description                                          :P & L accounts for BIL
            Select insert account button
            From                                                    :300000
            To                                                        :499999
            Save
            Select Back Arrow
            Account groups                                   :BSITEMS
            Enter
            Description                                          :Balance sheet accounts for BIL
            Select insert account button
            Form A/c                                             :100000
            To A/c                                                 :299999
            Save

Assign profit center in cost center

Path :Accounting-Controlling-Cost center accounting-Master data-Cost center-Individual processing-Change (KS02)

Give the cost center                                        :Dept A
Select master data button
Give the profit center                                      :Steel
Select save button or Ctrl+S
Ignore the warning message press enter
Cost center                                                      :Dept B
Enter
Profit center                                                    :Cement
Save
Ignore the warning message press enter

Creation of sales account as revenue element (FS00)

Give the GL account no.        :300000 Sales A/c
Company code                        :BIL
Select edit cost element button
Enter
Cost element category            :Select 11 Revenues
Save




Maintain automatic account assignment of revenue elements

Path :SPRO-Controlling –Profit center accounting –Actual postings-Maintain automatic account assignment of revenue elements (Tr code is OKB9)

Select new entries button
Company code                        :BIL
Cost element                           :300000  Sales A/c
Account assignment details    :Select 2 Business area is mandatory
Save
Press enter to save in your request
Select                                      :BIL with cost element 300000
Double click on detail per business area /valuation area folder
Select new entries button

Option 1                                                          Option 2
HYD location
            |
Steel cement    Pharma                                    HYD               BGL                MUM
        300000                                                    |                       |                       |
HYDà           Steel                                        Steel                Cement            Pharma
         300001   Sales cement                                                     300000          Sales account
HYDà           Cement
          300002   Sales pharma                                                              HYD   à Steel
HYD à Pharma                                                                                 BGL    à Cement
                                                                                                            Mum   à Pharma

Business area               : BILH
Profit center                : Steel
Business area               : BILB
Profit center                : Cement
Save

Choose addition balance sheet and p & L accounts

Applicable for second scenario: Application for second option

Same path à Select choose accounts (Tr code is 3KEH)

select new entries button
Account from              :100000
Account to                  :299999
Default profit center   :Steel
Save
Press enter to save in your request
Select profit center determination button
Select crate step button
Step description          :Profit center derivation though business area for balance sheet
items.
Select drop down button under name column
Select GSBER businesses area
Save
Select maintain rule values button
Select source field intervals on /off button
Account no.100000
To account no.299999
Business area               :BILH
Profit center                :Steel
Account no                 :100000
To account no.                        :299999
Business area               :BILB
profit center                :Cement
Save

END USER AREA
1)      Planning profit center wise for p & L items

Path :Accounting –Controlling –Profit center accounting –Planning –cost /Revenues-Change (Tr code is 7KE1)

Version select                    :0
From period                      :8
To period                           :8
Fiscal year                         :2008
Company code                  :BIL
Select next page or page down button
Profit center                      :Steel
Account group                  :PLITES
Select from based radio button
Select overview screen button
Per account no.300000 Sales account
Profit center reporting currency    :600000 (Minus report currency)
For account no.400100 salaries A/c without any sign
Save

Planning profit center wise for balance sheet items (Only for second scenario)

Up to planning the path is same à Balance sheet accounts change (Tr code is 7KE3)

Version                  :0
From period          :8
To period               :8
Fiscal year             :2008
Company code      :BIL
select next page or page down button
Profit center steel
Account group      :BSITEMS
Select form based radio button
Select overview screen button
For account           :100300 SBI rupee term loan
Profit center reposting currency 20000- with minus sign
For 200105 SBI current account profit centers reporting currency 200000 without any sign
Save



Posting of cash sales (F-02)

Give the document date               :Today’s date
Type                                              :SA
Company code                              :BIL
Posting key                                   :40
Account no.                                  :200105 (SBI current account)
Enter
Amount                                         :550000
Business area                                 :BILH
Text                                               :sales posting
Posting key                                   :50
Account no.                                  :300000 (Sales a/c)
Enter
Amount                                         :*
Business area                                 :BILH
Text                                               :+
Form the menu select Document –Simulate and save

Posting of salaries (F-02)

Document date                             :Today’s date
Type                                              :SA
Company code                              :BIL
Posting key                                   :40
Account no.                                  :400100 Salaries a/c
Enter
Give the amount                           :475000
Cost center                                    :Dept A
Text                                               :Salaries posting
Posting key                                   :50
Account no.                                  :200105 SBI current account
Enter
Amount                                         :*
Business area                                 :BILH
Text                                               :+
Document –simulate and save

To View variance report profit center wise for P & L items

Path :Accounting –Controlling –Profit center accounting-Information system-Repost for profit center accounting-Interactive reporting –Profit center group:Plan /actual /variance (Tr code is S_ALR_87013326)

From period                                  :8 (Current /Running month)
To period                                       :8
Fiscal year                                     :2008
Plan version                                   :0
Profit center values                       :steel
Profit center accounts groups       :PLITEMS
Select execute button

To view variance report profit center wise for balance sheet items:

Up to interactive reporting  the path is same àProfit center group: Balance sheet accounts plant / Actual /Variance (Tr code S_ALR_87013336)

From period                                  :8 (Running month)
To period                                       :8
Fiscal year                                     :2008
Plan version                                   :0
Profit center values                       :Steel
Balance sheet account group        :BSITEMS
Execute

Transfer of values from one profit center to another profit center
One cost center works for no.of profit centers we an assign only one profit center is cost center.
In dept A                          Profit center steel
From profit center steel transfer to cement
Manual transfer through cycles

No.FI document will be generated
No.CO document will be generated
Only profit center document will be generated.

Path :Accounting –Controlling-Profit center accounting-Actual postings-Profit center document –Enter (Tr code is 9KE0)      
                 
 Layout select 8A-001 document :Profit center /account
Select execute button
Company code                              :BIL
Select Enter screen button
Profit center                                  :Steel
Account no.                                  :400100 Salaries
In profit center local currency 500000 –(with minus sign)
Profit center                                  :Cement
Account no.                                  :400100 Salaries
Amount                                         :500000 (without minus sign)

Save

No comments:

Post a Comment