Controlling are currency / Profit Center accounting currency - Approach

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

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

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Difference between Business area and profit center accounting

Hi Frnds,
Can any body explain about difference between business area and profit center accounting .

Hi
Business area will have many profit centers. For example Vehicle is a business area in a company. Vehicle can be cars and Bikes etc. Here Vehicle is business area and Cars and Bike are profit centers. In broad Vehicle is a profit center. But as it has sub areas those are profit centers. So profit centers cannot be replaced with business area and vice versa. We can replace business area by Profit centre, only condition is that it should be in same controlling area. The business area is more like a business unit of a company. You can have multiple profit centers within a business area.
Main distinguish factor is that distribution and assessment in possible in profit center but not in business area.
One more distinction is that Business area need not be attached to any organisation structure. But profit centres can be created only under the controlling area. Business area can be across controlling area.
Business area concept is used for making stragic decisions by the management whereas the primary purpose of profit centre accounting is responsibility accounting.
http://help.sap.com/saphelp_erp2005/helpdata/en/ff/277203deea11d3b5b4006094b9b0a5/frameset.htm

Using Business Area and Profit Center Accounting with New GL functionality

Hello,
We are Public Sector and using ECC 6.0, we have been using Business Area with Fund Management. We also use Special Purpose Ledger with Document splitting. Before migrating to New GL functionality, we want to understand
-     The possibility of using both Business Area and Profit Center Accounting, and the impact on the system
-     If we activate Profit Center Accounting before migration, how will it work with the splitting process?
-     If we migrate without Profit Center Accounting, will this cause the activation of Profit center accounting later to be more complicated, even if we migrate again?
Thanking you

Hi Sachin,
Thank you for the reply, we want to know that
-     The possibility of using both Business Area and Profit Center Accounting, and the impact on the system
If we decide using Profit Center Accounting with Business Area with New GL functionality how we should do it
-     should we activate classical Profit Center Accounting before migrating to New GL functionality, if we do this how will it work with the splitting process?
-     If we migrate to New GL functionality without Profit Center Accounting, will this cause the activation of Profit center accounting later to be more complicated, even if we migrate again?
Thanking you
Tipu Khan

Change Business Area to Profit Center Accounting

Hi Gurus,
Here we want to elminate business area and migrate to profit center accounting, could anybody highlight what are the important steps for the changes.
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Regards,
Kick

Did you activate Business area?

Difference between Buness area vs Profit center accounting

Hi
What is the difference between the business area and profit center
1. Insted of Business area why can we use profit center accounting ?
2. diffenrence between the assessment cycle and Distribution ?
Thanks

Both are used for internal treporting purpose.
but profit center have some advantages over business areas.
advs;
. Profit Centers will be used instead of Business Areas to generate Profit & Loss statements and Balance Sheets for each location. Profit Centers has the following advantages over Business Areas;
.           It is very flexible in nature and can be created / activated any time as it is Master Data.
.           Profit Centers does not need adjustments/activities in the month-end due to Document Splitting functionality.
.           Profit Center has its own Ledger/ SAP Tables in the background
.           It can be grouped at higher level and one group can have any number of Profit Centers in it
.           Assessment and Distribution of Costs between Profit Centers can be done.
chandra

Profit Center Accounting in ECC 5.0

We are on ECC 5.0 and having some issues with profit center accounting. Is there any way that I can tell if Profit Center Accounting has been fully configured? If anyone has any documentation, I would greatly appreciate it.
Here are the problems:
1. We are posting to profit centers during document entry (FB50, FB60, FB70, FB01, F-02, etc.) however, when I go to review the documents, it only shows the accounting document and not a profit center accounting document. This doesn't seem normal. I can confirm that we have a document type set up for PCA, but it doesn't appear to have a number range assigned to it. Would there be any reason why a company wouldn't want to have PCA documents being created? We are running reports out of BW as well....
2. When I try to run typical PCA reports such as
KE5Z                Profit Center: Actual Line Items
S_ALR_87009712      Profit Center: Area list plan/act.
S_ALR_87013327      Plan/Actual/Variance: Profit Centers
S_ALR_87013332      Curr.Period,Aggreg.,Year Pl/Act.PrCt
S_ALR_87013340      PrCtr Group: Plan/Actual Comparison
I get the message, "No data found." I have gone to the GLPCA and GLPCT tables and they show 0 entries. Are these transactions considered "old PCA" in ECC 5.0? Are there other PCA reports that may read from new PCA tables or are there new PCA transactions in ECC 5.0?
Thanks for any help or info.

Hello Linda,
The transactions are the same between the two versions.
To check if the customizing is ok you could see :
- If you have profit centers created KE53 or KCH6N
- The 1KE1(customizing analysis)give you a profit center resume of your customizing.
- Show if the 0KE5 transaction is completed with the controlling area, dummy profit center, valuation view, control indicator .
- To show if the EC-PCA actual posting is activated, transaction 1KEF
- GB02, number range have to be created.
Regards
Valerie
Message was edited by: valerie secondy
Message was edited by: valerie secondy

WBS, Business Area and Profit Center not flowing in GR/IR Account

Hello Experts,
I have come across a very strange situation. I have two MIGO documents which are showing different posting characteristics:
1) FI Document 5000000553
In this document, the Business area and profit center is flowing in GR/IR Clearing Account (15660000) but WBS element is not flowing to this line item.
Screen shot is as follows:-
As you can see from the above screen shot that, for GR/IR Account 15660000. Only Business Area and Profit Center are flowing and WBS Element is not coming.
2. FI Document 5000015602
In this document, the WBS element is going in GR/IR Clearing Account (15660000) but Business area and profit center is not flowing to this line item
Screen Shot is as follows:-
From the above screen shot, Business Area and Profit Center are not flowing but WBS Element is coming.
Could you please let me know what could be the possible reason for this behavior of both the documents.?
Regards,
Amit

Hi Saurabh,
Its great to see your reply. Yes, I know that currencies and posting dates are different. But that's the way it is. One document is for fiscal year 2014 and other is for 2013. There is nothing related to currency and posting date which was causing the strange behavior of the system.
However, our team analyzed the issue and found that only for service material having a special valuation type related to services is causing the problem and still we are diagnosing the other possible root cause as well.
Thanks for your co-operation and suggestion.
Regards,
Amit

Profit Center Local Currency (Currency Type 90)

We are in the middle of implementation of SAP and our curreny setting is as the following:
Group Currency: USD
Controlling Area Currency: Currency Type 30 (USD)
FYI we are also implementing multiple valuation as the following (T-Code 8KEM):
Currency Type    Valuation
10                     Legal
30                     Group
10                     Profit Center
Now we set up Profit Center local Currency as Curreny Type 90 (Profit Center invoice currency) in IDR since we want to have different currency then our Group and Controlling Area currency (USD).
However I am just worried that this will cause inconsistency in Profit Center especially between FI and CO.
Anybody has experience whether it is safe to use curreny type 90 as Profit Center local Currency?

Hi Ernst,
Did you ever get a solution for your query. I am facing a similar situation.
In my case the company code currency is USD and controlling area currency is also USD. I am not sure if I should leave the currency field blank in the PCA controlling area settings or populate it with 30 or 90? 90 to me means I am recording PCA currency again as USD when the system anyways records the transactions in both the transaction and local currency. 30 makes sense to me where I can choose the group currency EUR but then the currency setting of PCA is inconsistent with that of the controlling area.
Would appreciate if you can advice on the matter.
Happy New Year
SB

Business Area vs. Profit Center Accounting

Hi all,
I have a doubt regarding this issue.
Our customer is a holding composed by 3 legal entities, each one with its own Balance Sheet. The company produces in such a way that they need to plan production and purchases globally (for the 3 legal entities).
I searched how to deal with this, and if a create 3 different company codes it is really difficult to plan production and purchases for the 3 company codes globally. The most suitable solution would be to use STO process (stock transfer orders), but the purchases would be done by only one company code and this is not what the customer wants because only this company code would have tax credits.
I am now thinking about having one company code divided into 3 different business areas or profit centers, but I am not sure which solution will be better, taking into account that each legal entity must submit a separate Balance Sheet. In Sap Help, I found that it is better to have different business areas if each organizational unit must submit external presentatios. But I was told that Profit Center Accounting came to replace Business Area. Is that right? May I use Business Area to do so or Profit Centers ? Which one is the most reccomendable?
Thanks in advance.
Regards,
Florencia.

hi,
if u r setting as a business area,still u need to follow the reporting procedures to the local authorities, such as banks,tax,etc. but,if u do it as a profit center,it will come under ur internal entity (controlling), and for the local authorities,ur holding entity will take care of reporting,etc.
thanks..

No documents of Profit-Center Accounting are generated for prof/ctr valuat

Dear All,
We have activated multiple valuation: Legal, Group, Profit Center.
We have activated Profit Center Accounting too.
Now we have performed sale of material from one Company code to another.
And there are no documents of Profit Center Accounting. Plus in Profit Center valuation there are no sums on revenue account.
All sums are posted to account defined for internal material movements in transfer price's customizing.
What customizing is missing?
Best regards,
Kamila.

Hi Manoj,
As you know that transferring balances from one PC to another completely with in controlling part. Until unless you post any document from FI or MM side system will not generate any Accounting doc for any transactions. And we do not have any direct postings in controlling. Thank you,
Regards,
Inthiyaz

Difference between Business Area & Profit Center Accounting

Can anybody help me out by explaining the difference between Business area and profit center? Because both the concepts are used to define a product line / function in a business,so why they are different?
Also let me know why business area concept is replaced by profit center?
Regards
Sagar

hi
PCA:
Created per Controlling Area & Company Code [System validation at Company Code Level]
Data:Manual Entry
Derivation by referred cost object
Derivation from offsetting item based on the above mentioned rule
Periodic processing:Monthly period closing program to be executed
Distribution / Assessment possible [PCA Documents are created which can be verified by the auditor]
Report showing individual and all PCA totals to match Company Code Values GL Account wise can be created
other:Consolidation at PCA level
Multiple Valuation possible for PCA at
FI Level
Consolidation Level
Material Ledger concept for PCA for parallel valuation of materials
Business area:Independent Dimension
[Can be used across company codes u2013 Manual validation required to ensure Company Code-Business Area parity]
Data: Manual Entry
Derivation from Organization structure
Derivation by referred cost object
Derivation from offsetting item based on the above mentioned rule
Periodic processing:Monthly period closing program to be executed
Distribution / Assessment NOT possible
Report showing individual and all PCA totals to match Company Code Values GL Account wise available
Others:Consolidation at BA level
Multiple Valuation not possible at BA level
Material ledger concept NOT extended to Business Area
Further development for Business Area discontinued [Note 321190]
thanks
Srilaskhmi

Transporting Control Parameters for Actual Data in Profit Center Accounting

Hi Friends
Transport type of control parameters for actual data in Profit Center Accounting has been mentioned as Manual, when I try to manually create the Transport Request the Transport option in the Menu is disabled. Is there any other way to transport this configuration.
Regards
P Rajan

Hi
I think the settings that you are mentioning is through transaction 1KEF please clarify. Else elaborate where you have set the transport type manual.
Transport request are the domain of Basis people and is meant for transport from one client to another like quality to production.
Anand

GLPCA In profit center local currency is 0

Hello,
I have a question regarding the table GLPCA.
GLPCA provides data in my solution, but I don't know this table, that's why i'm here....
For the same selection criteria, I have the same amount (not zero) in Transaction Currency and in Company Code Currency but I have 0 in Profit Center Local Currency.
I would like to know if it is normal or not, and an explain.
Thanks to help me.
Fanny

Hello,
I have no access to this transaction, I don't work in R3.
What kinf of information I should have find?
Regards
Edited by: Fanny A on Jul 2, 2010 1:40 PM

Functional Areas (FA) in Profit Center Accounting (PCA)

Dear all,
We use Functional Areas (FA) to separate fixed costs in Profit Center Accounting (PCA). Originally, in FI, fixed costs are posted with Cost Center which is linked to FA. Now we find out that some cost centers missed their link to FA and hence not all fixed costs transferred to FA in PCA. We fixed the missed links, but the main question now is, how can we transfer information about FA for already existing documents? Is there any way to update profit center documents and totals? Or erase and transfer them once again?
Thanks in advance for the answers.

Please see the following SAP note. I corrected my ledger with help of Following Note
1- 106180 (Correcting functional areas in the PCA Ledger)
2-677630 (Correcting functional areas in FI documents)
3- 115840 (Correcting functional areas in special purpose ledgers)
4- 87064 (Reconciliation Ledger: Cost-of-Sales Accounting Problems)

Business Area/profit Center Accounting

Dear All
I need your sugesstion
we neet to create the Financial statement at plant level.
for that Business are is ok or Profit center Accounting.?
what would be the benfit that you sugsest?

PROFIT CENTER IS GOOD COMPARED TO BUSINESS AREA BECAUSE REPORTS ARE NOT UPDATED AUTOMATICALLY

Controlling are currency / Profit Center accounting currency - Approach

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