Balance sheet and cost center

Hi,
I need to seek clarification on this.
What baffle me is that, in FB01, if enter balance sheet account, cost center field also available. Why need to have cost center for balance sheet account? Can have few business example why need to have cost center for balance sheet account?
Thanks

Generally you do not need to populate cost center for balance sheet accounts but there is only one exception in case of Fixed Assets. There is a cost element category 90 which gives you the privilege to fill in cost center for the Asset accounts provided you use this GL in Fixed Asset configuration as account assignemnt. I do not know if this is the case in your client. For all other scenarios you can not even key in the cost center to balance sheet accounts because B/S accounts are not created as cost elements.
Follow options provided by fellow members related to field status variant and posting key settings.
Hope this helps

Similar Messages

Balance sheet and profit center

Dear Forum,
1) Not all balance sheet require profit center. correct? Only vendor, customer, material, asset only?
2) Why vendor also require profit center?
3) May I know why balance sheet items require profit center? Normally p&l items with profit center which deriving from cost center.
Need advice.
Thanks

Hi dear,
Earlier SAP was using business area. But it was not able to derive correct balance sheet.
So to resolve this new gl is implemented. It has a unique feature of Balancing GL. Here when the debit and credit line items has different profit center, it creates a additional line items with apposite effect to profit center. So u r profit center wise balance sheet always tally.
Basically all expenses are related to cost and hence they are recorded in cost center. If you ask me before coming to sap I use to use profit center to group cost center for internal reporting. But sap derives profit center balance sheet where expense comes from cost center to profit center and balance sheet accounts are assigned to profit center.
Regards

Gl account and cost center in fb01

hi,
1 may i know why balance sheet account allowed to have cost center? in fb01, when i enter balance sheet account, cost center field is available.
2 why vendor or customer account not allowed to have cost center in fb01?
thanks
rgds

Dear,
Asset is one of your balance sheet account and it is often a need to track assets based on cost center so that it is available.
Vendor and customer are never tracked by cost cetners but the profit center. Because cost center are often like Production, Administration, Sales etc.
So vendor can not belong to aspects like sales, production etc. Moreover vendor and customers derive profit center from offsetting line item. Both cost centers and profit centers are not available in line item.
Regards,
Chintan Joshi

Profit Center wise balance sheet and Profit and Loss account

Hi Experts,
I will explain my scenario
The is cleint having Head Office for handling procurement of goods for all branches(8) and the physical delivery happens for goods at the requested branch and GR and IR also makin at the branch level.
And we are treated each branch as profit center apart from HO(profit center).But the vendor payment should be happen from HO(prfoit center) so and they are not using automatic payment programme.
My question is
1.While doing the vendor (Branch)payment from Cash/Bank GL (HO) how the balances will be tallied ?
2.If I am using the document splitting and zero balance document clearing will it tally at the profit center level ?
3.At the period end if I will do the 1KEK T Code to transfer the payables to the profit center which profit center system will take for posting ?
Please advice me in this and I will give good points with correct answer.

Hi Edukondalu Garu,
Please find answers to your questions below:
1.While doing the vendor (Branch)payment from Cash/Bank GL (HO) how the balances will be tallied ?
Answer: The Profit Center balances will get automatically tallied due to document splitting and Zero balance account being defined properly. The automatically identifies it
2.If I am using the document splitting and zero balance document clearing will it tally at the profit center level ?
Answer: Yes that is the main criteria to get full fledged Balance sheet and P&L account by Profit Center
3.At the period end if I will do the 1KEK T Code to transfer the payables to the profit center which profit center system will take for posting ?
Anwer: With Document Splitting, you don't have to do the period end transaction in PC to transfer the account payables, accouts receivables and fixed assets. The transfer is online and real time basis.
I hope i answered all your questions.
Please feel free to get in touch with me if you need futher clarifications
Best Regards
Surya

Profit center group wise balance sheet and trading account report req

Hi.
We are using Profit ceter accounting for one of our clients.its ECC 6.0 therefore New GL is activated. FSV is not configured.
Now I want to get the reports - Profit center group wise balance sheet and trading a/c.
Can anyone help me in this regard.
Thanks in advance.
Regards,
Padmavathi

Hi Padma
the std reports S_PL0_***** serve the purpose... You can browse SAP easy access menu under FI
you can input PC or a group of PC as additional selection criteria
Ajay M

Functionality of Profit Center and Cost Center

Hi,
I am unable to understand the functionality of Profit center and cost center, I know that cost center represents area within an organization for which you will like to see the expenses for a particular time period. for example in an organisation we have three cos centers Accounts, HR and Admin. whenever you post an accounting document in FI you will specify the cost center to which the expense relates. but in some cases when you post an expense and give the relative cost center the profit center is also driven by the system. why is this behavior? i mean i have posted an expense not an income then why is system driving the profit center as well?
Profit centers are used if you want to see the profit of different area of your organisation. in what kind of postings we use profit center? and if we could use profit center to draw income and loss for a specific area why do we need segment reporting? and what is the difference between Segment and Business area. what i understood from their definition is that they are both same and use for same purpose.
I am totally lost in these concepts. please some one help me out with an example. i am stuck at this point. some one please clarify my concept of Profit Center, Cost Center, Segments and business area please.

Hi,
Cost center & Profit Center are organizational units within the enterprise structure , created for better internal control.
As the name suggests Cost Center is the lowest level of the organizational unit representing a defined location of cost incurrence or otherwise to which you can meaningfully assign the cost(both direct & Indirect).
Profit Center is an organizational unit in accounting ,where management would require to see the profitability & fix the responsibility. It may be each plant/division of the company .
If you consider the Plant is the Profit center, you can take the various deptts in the Plant as cost centers. you can draw a balance sheet & profit & loss account statement at profit center level but this will be for your internal use.From this you can know the ROI on particular area. Profit centers are assigned inside the cost center so when you update cost center, profit centers are updated automatically.
Where as Segments are used for legal reporting of your accounting standard as per IFRS. Both Business Area & Segments are more or less same with some technical difference.
Business area is a free organizational unit. It can be derived through cost center or can be entered manually.
But segment is a dependent organizational unit. It is defined & attached inside the profit center master data. It can’t be entered manually.
SAP suggest to use the Segment concept.
Thanks & regards
Deepak

Material and cost center

Hi,
May I know where is material kept?
As I understand, only when consumption of materail, it is debited to cost center. So before consume, the material is in inventory.
I would like to know if in inventory, then it is not belong to any cost center? then why in profit center?
thanks

Newphama Calesta wrote:
hi,
> thanks.
>
> 1 Anyway, is it possible that we debit cost center when the material is consumed in the cost center?
>
> 2 What about direct labour cost? It is coming from the cost center where the worker is reported. so how can we relate direct labour and cost center?
>
>
> 3
> Sorry, I do not understand the statement in bold.
> Need your help to explain a bit.
>
> Profit center is a responsibility area within an organisation which is required to show its own return on investment. For this purpose we require a balance sheet as well as profit and loss account for each profit center.
>
> thanks
Hello
1) Yes it is possible to debit cost center when the material is consumed in the cost center. An example of this is consumables which are consumed against cost centers with movement type 201. This is because these materials are not part of the BOM and pretty in nature.
2) Whenever wages and salaries are booked the relevant cost centers are debited. Here the wages account is debited (so also cost center) and bank/wages payable account is credited. When we do actual production we charge direct labour to Manufacturing orders as an activity. This is only a CO entry where the cost center is credited and the manufacturing order is debited.
3) Profit center is a responsibility area means the person who is managing the profit center is not only responsible for the profit but also responsible for the return on investment. Investment means total of current and fixed assets - liabilities. There may be two profit centers say A and B with investments of 1000 USD and 5000 USD. Both make a profit of 200 USD. So when we see the ROI then A is much better then B.
So to find the total assets which includes stock, we need to maintain them profit center wise. This is the reason why the profit center field is available in material master.
Hope this clarifies your doubt.
Sangram

3KEH? Additional balance sheet and P&L accounts EC-PCA

Hi experts,
I have a question concerning transaction/funcionality 3KEH (Choose Additional Balance Sheet and P&L Accounts).
Can you explain me in generall which accounts you should maintain here and which not?
It's clear that some P&L accounts, for which no cost element exists (e.g. taxes) can be connected with a specific profit center.
Question: if not all other p&l accounts should be posted on the dummy profit center?
I am especially interested in MM (accounts). do we have to maintain these accounts (OBYC - BSX) here? I Think the profit center is connected via material?
which accounts do you maintain here?
Thanks a lot in advance
Butch

Hi Eli,
thanks for your answer.
"All B/S accounts that you want to be managed in PCA tables". Does that mean if we want to manage the B/S accounts for materials, we have to maintain them there with the Dummy profit center?
otherwise the B/S material accounts are not shown in PCA?
in general we want to manage all B/S accounts in PCA to report the segments with full balance sheet and P&L.
thanks
Butch

** Balance sheet at Profit center with Inventory valuation at CoCd level **

Scenario:
Inventory valuation is at CoCd level. Moving Average costing.
There are 2 plants in CoCd 3000.
1.     I created material 1234 in plant P1 (profit ctr P1) & in plant P2 (profit ctr P2)
2.     Then, I received a PO - $1000 (100 qty @ $10) in plant P1 & $1100 (100 qty @ $11) in plant P2
3.     So the Moving average at CoCd is $10.50
4.     I created a Sales order to ship out 100 qty from plant P1. The PGI posted at moving average at CoCd level i.e.
        Dr COGS $1050
        Cr Inventory $1050
5.     Now, Inventory GL account value becomes -ve 50 at plant P1
6.     MB52 looks wrong as below. It doesnu2019t show -50 in P1 & 1100 in P2
Question:
Is there any standard way to accomplish Balance sheets at Profit center with Inventory valuation at CoCd level?
- We can do custom development to distribute Inventory balance on profit centers upon receipts or Invoice receipts (i.e. anything that updates the Moving Avg at CoCd) eg in step 2, when $1100 (100 qty @ $11) in plant P2 is received, then post +500 to inventory in P1 & -500 in P2, to make both P1 & P2 at 1050.
However, this would be huge effort on Development, Testing & ongoing maintenance.
- Another custom way would be to post to Profit centers a periodic entry to correct Inventory balance to (Qty on hand x Moving Avg at CoCd)
Please let me know your thoughts. Thanks.

Hi,
I don't think so it's happen at valuation at Company code level.
Inventory Valuation always at plant level only not at Profit center and company code level.
In your case 2 Plants and 2 Profit centers. There is no chance to different the value at Profit center . Check once in Dev. server with example.
Regards,
Kishroe

Configration steps for business area wise balance sheet and p&L accounts

dear all
sinario is two business areas say A and B for diffternt two products in one company code which is already running with different business .
please any one tell me what are the configrations for business area wise balance sheet and profit and loss account.
what are the steps required and for configration and when enduser come into picture acceptance test is reqired.
plese inform me which are the steps required to test enduser test for business area wise balance sheet and profit and loss account
regards
babu

Hello
No seperate screen available for BA set up.
Follow the IMG, enterprsie structure, define and assign set ups.
Assign to SO / Plant /
Create cost elements and assign cost centers for each business areas.
Create clearing accounts for readjustments in BS and PL, and execute BA pl and bs adjustment programs for taxes, GRIR and some accounts, where BA is not populated.
Now you would get seperate BS for each BA
Reg
assign points if useful
dear all
sinario is two business areas say A and B for diffternt two products in one company code which is already running with different business .
please any one tell me what are the configrations for business area wise balance sheet and profit and loss account.
what are the steps required and for configration and when enduser come into picture acceptance test is reqired.
plese inform me which are the steps required to test enduser test for business area wise balance sheet and profit and loss account
regards
babu

Balance Sheet by Profit Center

Hi Gurus,
Just a clarification for the profit center balance sheet. Let say for example I purchase an item from vendor A for the profit center A. The profit center is then inherited from the expense line item.
Debit    Expense      900                    Profit Center A
Debit    Input tax       100                    Profit Center A
Credit      Vendor A 1000                   Profit Center A
Now, before payment they realized that a portion of 100 should be for Profit Center B. I did a repost of line item, thus creating financial entry also to transfer the Profit Center A to Profit Center B. But this is only for the expense account.
My question is, is there a way to allocate also the portion of 100 for the Vendor and tax line item from Profit Center A to B?
If this is not met, then how can we actually generate balance sheet by profit center.
Thank you.

Hi
You can get the balance sheet as well by Profit Center.. New GL's document splitting functionality is very much equipped to provide that
Once you activate it, and specify pr ctr as the doc splitting characteristic, no document will be posted without Profit center populated in the line items.. However, this is possible only for ECC Version of SAP (5.0 or above)
If you are using Classical PCA, then you have to execute transactions like 1KE* at period end to update Pr Ctr in the balance sheet line items
Personally, I appreciate the New GL functionality of Profit center and doc splitting over Classical PCA
Regards
Ajay M

Can we take Balance sheet and profit & Loss account as per plant & Sales

Hi Team,
Can we take Balance sheet and profit & Loss account as per plant wise & sales office wise also.
Regards
JKM

hi jkm
Hi
This can solve your issue could be helpful to you.
Go to this menu path for report painter
Accounting - Financial Accounting -Special Purpose Ledger - Tools - Report Painter - Report Writer - Report Group - Display
T code GR53, GR55
Enter the report group you want for b/s and p/l statement and choose execute and give the report group again and choose execute.
After that give the year, period from to, company code, fiscal year, ledger and plan version 01 and choose execute
Choose in front of the item Production Variances. The system displays the account to which the line items were posted. Material consumption is posted to account OEM Products Consumed.
To call up detailed data, double-click on account
In the dialog box, choose Actual Line Items for Table GLFUNCT, and then choose
To display the original document, simply double-click on it to call up the detailed data. In this case, the original document is a Materials Management document.
You document is listed under the FI-SL document number that you noted in the step Display Goods Issue Document. Select the Doc. info tab and simulate .
Select one of the items relevant for material consumption by double-clicking it. This should be item 002, 004, or 006.
Choose enter go back and cost of sales appear now switch to your first session.
kind regards
Arman
sap fico

Difference between business area balance sheet and profit centre accounting

Hi all,
I want to know what are the differences between business area balance sheet and profit centre accounting.
Please tell the merits and demerits of both.
If, I want to get plant-wise profitability of a company then which method is more recommendable and why?
Regards,
Charu Mahawar

hi,
look to that interesting thread:
Re: Business Area Vs Profit Center
Andreas
pls reward useful answers
Thank you !

Balance sheet on Profit center level

Hi,
Whats the best option to get balance sheet on profit center level in ECC6.0 ??
Regards
Shaun

Hi,
The best option to get balance sheet on profit center level in ECC6.0 is S_PL0_86000028 - FINANCIAL STATEMENT ACTUAL/ACTUAL COMPARISION.
Before getting this report you must make the new gl settings by making profit center as mandatory field, and activating the neg gl functionality.
Thanks & Regards,
Shashi Kanth.

PO reporting that can capture PO number, PO value and cost center

Dear SAP expert and gurus,
Would like to seek for your professional advise and consult on which report in MM that can capture the PO number, PO value and cost center.
Kindly advise.
Thank you
Regards
Leonard Tan

ME80FN is a good report that captured the PO number and amount. However, the cost center is not being captured here. is there any suggestion?
ME2K is not an ideal report to user cause, user requires the data to be shown in one line instead of 2 to 3 line.
Is there any report like ME80FN can be captured PO number, PO value and Cost Center.
Thank you
Regards
Leonard Tan

Balance sheet and cost center

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