Cost centre & profit centre

Hi Friends,
I am working as a xi consultant, I have no idea about cost centre,profit centre and orgarnizational structure. Please expain me with real life example in an organization.
Thanks,
Suresh.

Hi Suresh,
Cost centre : in terms of Hr - underwhich your costing are done. Cost centre are assigned at the level of position or Org. units.
the link gives you fare intro towards it.
http://help.sap.com/saphelp_nw04/helpdata/en/13/05b3ae635611d2b43b006094b9c9b4/frameset.htm
Profit centre : It is configured by finance people. where your revenues are posted. Link gives u some intro.
http://help.sap.com/saphelp_nw04/helpdata/en/13/05b3ae635611d2b43b006094b9c9b4/frameset.htm
Both cost centre and profit his created by Fico Consultant.
While Org. Struture is created under organisation management. Creation of you positions and their relationship used for reporting purpose is said to be Org. Struture.
Link: http://help.sap.com/saphelp_nw04/helpdata/en/4b/6a43cccafe11d2b49d006094b9c9b4/frameset.htm
with cheers
Arun

Similar Messages

Cost Accounting - Profit Centres

Dear All,
Can any one please guide me in how to operate Cost Accounting & Profit centres ins SAP B1 2007B

Hi!
Check these threads,
cost accounting in financial module
Financial + Cost Accounting
Dimensions - Cost Accounting.

How to find out Plant wise Cost centre/ Profit Centre

Hi Guru
My problem is How to find out plant wise cost centre. To be more clear------ I want to know what cost centre is valid for a particular plant
My mail Id. [email protected]

Hi,
Then this explains the problem.
The message number starts with a Z and so it is not a standard SAP message because SAP does not link cost centres or GLs to Plants
But also, the message doesn't indicate a problem with the link? it is stating that you should check that the GL account and the PROFIT CENTRE are valid for the posting for the period???.
It looks like someone has written a custom modification in your system and so we are , unfortunately, unable to help because the data would be in custom tables and not standard SAP tables.
You can only solve this problem by speaking to someone within your own company who knows the mdofication that has been done.
Sorry
Steve B

Cost and Profit Centre Authorization

Dear all.
I want to impose authorization for the following case:
for instance, a user is working on transaction fb50. His requirement is to perform authorization on the line item at cost centre so that when he presses F4 on the Cost Centre field only those cost centres should be available that are assigned to him.
<b>for example</b>:
user A can see cost centre(s) to which he has given access to.
How can I, being a basis administrator assign him this authorization ?
Thanks in advance.

Thanks for the prompt reply, Morten!
I think i've mentioned my problem partially.
After we press F4, we have to select a cost center. After selection, the window shows all cost centers at my end. I want to impose authorization here based on indiviual users (i.e. after selecting the cost center), and NOT on F4 menu.
Sorry for the confusion.

Profit Centre substitution

Hi,
I've created an IO master without inputting the cost centre & profit centre. However, when I enter the IO in the line item of a P&L, the dummy profit centre was substituted. I would want to key in any cost centre & profit centre in my line item as well, that is why i purposely left the cost centre & profit centre fields blank in my IO master.
How do I prevent the dummy profit centre from being substituted?
Pls advise.
Thank You & Best Regards,
Ethan

If Profit center accounting is activated the P&L acount entry should be posted to some profit center.
When a P&L transaction is posted to the internal order (Real object) it should go to the dummy profit center, since you have not assigned any Profit center to the internal order,
Before you post the transaction you can replace the Dummy profit center in the profit center field with desired profit center manually (Overwite Dummy profit center with the desired profit center)
The mandatory requirement of profit centerposting is to reconcile Profit Center accounting with the fFnancial Accounting.
At the period end process all the transactions in Dummy profit center should be settled to the right profit centers.
We should use Profit Center monitor to see that any Account assignment objects or Cost object are not assigned to Profit Center. If you find any objects witout profit center assignment, you should assign relevant profit center to those objects.
If you leave those objects without profit center assignment, the dummy profit center will come into picture when you use those unassigned objects for any FI or CO transaction.
Hope you are clear now.
Prasad

Profit Centre Allocation

G'day all,
Hope this finds everyone well.
In any case, we have a scenario where 100% of revenues/expenses is initially posted to a profit center 1000 of company code A.
This then needs to be allocated to profit center 1001 of company code B.
Both company code are assigned to the same controlling area and uses the same cost centre and profit centre hierarchy but have different cost centre/profit centre groups.
We will be running on ECC 6.0
Can anyone advise as to how this can be performed?
Should we use distribution/assessment of the classic PCA functionality? OR should we use PCA allocation within New GL?
In either case, we are not sure how this works as we find that it is not possible to allocate revenues/expenses from one company code to another. Are we missing something?
Thank you,
Richard

Hello
I am not sure of transferring values to PC of a different CC, but check in 9KE0, maybe you will have parameters for inter CC transfer.
Actually enter the PC of the other CC and see what happens.
Reg
Suresh

Profit Centre and Cost centre not updated

Hi,
I have posted expenses through FB60 and assigned cost centre to the expenses account and not for vendor item. Entry passed was posted.
But when i checked the document, i saw that the cost centre and profit centre is appearing in one line item (i.e. expense line item) only.
Afterwards i made payment through F-53. In this entry also there was no cost centre and profit centre in vendor line item. But the same was appearing in "outgoing bank" line item

Hello,
If you are on classical GL, your vendor line items or customer line item will not be updated automatically.
If you are on New GL functionality and document splitting, you will have profit center updated on customer and vendor line items.
Regards,
Ravi

Cost centre and Profit centre in one query - Authorisations not working!

Hiya,
I have another problem related to Analysis Authorisations.
I have created an AA with Cost Centre and Profit centre access restricted to a certain node of a hierarchy (type 1 - this node and below). For example, the User can only run a query at Cost Centres level of Country Belgium - the query works fine. Now, the user wants to drill down by the relevant Profit centres. According to the log, the system checks for Profit centres like * and says the user is not authorised. All this, despite the fact that all Profit centres belong to country Belgium and user has been given access to see these profit centres.
What do I need to do to enable drilldown by Profit centre? I can't make a "*" access to Profit centre as the user will be able to run other queries at global level, which is not what I can allow.
Any suggestions?

Hello,
I don't know if it is relevant, but I had a similar problem when I had two characteristic each with hierarchy restrictions in one authorization object.
I "solved" it by separting each characteristic into its own authorization object.
BR
Ondrej

Problem with the cost centre budget is being copied to profit centres 1KE0

Hi Experts
I am trying to cost centre budget is being copied to profit centres using transaction code 1KE0. The log displays all entries were successful but does not update the table and i did run foreground and backgound.can any one help me.

sloved

Change the profit centre in the cost centre master after a year

Hi All,
Could you'll please let me know whether it was possible to change the profit centre in the cost centre master and if i did what will be the implications.
Thanks and Regards,
Vandana

Refer transaction code OKEG.
You can maintain master data for cost centers, cost elements, activity
types, and business processes with time dependencies. You can make
changes at any time for any given time interval. Data storage also takes
place with a time reference. In this way, a master data record can have
multiple database records storing different information.
The smallest interval is one day. To ensure data consistency, you cannot
change each field daily. The timeframes in which you can change a field
depend on the field functions, which are fixed by the system and cannot
be changed. Master data maintenance includes an automatic check for each
field's time-based consistency, resulting in individual time-based
maintenance for each field.
The following dependencies are supported:
o   Not time-based
o   Day-based
o   Period-based
o   (Fiscal) year-based
This function provides an overview of the time dependencies of
individual master data fields during master data maintenance, along with
checks and storage of consistency timeframes. You find this information
in the "Time dependency" column.
If you use fields requiring characteristics greater than one day and
which are changed for the system lifetime of the object, the system
automatically creates a new database record for this processing
interval, and changes the time-based validity of existing records. The
change is logged in the master data record with the time reference.
However, a great number of changes in multiple timeframes will result in
a correspondingly great number of data records.
Fields which you can change freely (indicated in the DAY column) can
possess different time dependencies only if you mark them additionally
as historically relevant. This activates the time-based updating for the
records.
Object 1000 has one master data record created with a fiscal year of 12
periods and the cost center name AAAAAAAAAA. During master data
maintenance, you change the cost center name in period 5 to BBBBBBBBBB.
The system reacts with one of two options.
o   "Name" is marked as historically relevant. The existing master data
     record for periods 1 - 12 must now become three records:
     1000   01-04   AAAAAAAAAA
     1000   05      BBBBBBBBBB
     1000   06-12   AAAAAAAAAA
o   "Name" is not marked as historically relevant. The existing master
     data record remains intact, with the name changed for the entire
     existence of the record:
     1000   01-12   BBBBBBBBBB
Edited by: Ravi Sankar Venna on May 19, 2009 4:03 PM

Can we attach cost centre to profit centre group?

Hi all
I would like to know whether a cost centre can be attached to profit centre group or is it mandatory to attach it to only profit centre?
Also can i maintain profit centre and profit centre group at same level in profit centre hierarchy?
Regards
Smita

Hello
Cost center will be assigned to Profit center only not to profit center group. the main intention of the maintain the profit center in the cost center master data, what ever the transactions are posted to the particular profit center the same may be posted to Profit center.
Profit center group means, all the similar nature profit center will be clubbed under one profit center group or you can prepare the profit center groups for your reporting purposes also.
Regards
madhav

Assigning Sales Revenue cost element to various Profit centres

Hi
I have one controlling area and three company codes assigned to it.
I have around seven profit centres under each company code.
How can I assign the sales account (revenue cost element) to different profit centres. No cost centre assignment will be given in the posting.
I am unable to find a solutions to this. Kindly offer your views on how can we assign the same sales revenue element to different profit centres under various company codes.
Regards

check this path'
Controlling>Profitcentre accounting>Assignment of account assignment object to prfit centre>assign cost object
Define the cost element in it
Edited by: shibu john on Oct 28, 2008 12:31 PM

How to download and upload cost/profit centres

Hi Gurus,
Does anyone know/have the procedure to download/move cost/profit centres from one client to another not involving a transport (ECC6)
Regards

Hi,
If you don't do it via transport, you can use ALE distribution methods or LSMW/CATT functionalities for mass upload. For ALE method use BD16/BD17 for cost centres, KAVB for hierarchy, and KE75/KE77/KE79 for profit centres. You will have, of course, to define distribution model first (BD64).
Regards,
Eli

Changing Cost of SAles Account form Profit Centre to Cost Centre

In order to be able to forecast against Cost of Sales accounts within the same process and plan version as expenditure accounts, I am proposing to create Cost Elements on the G/L accounts associated (they currently post to Profit Centre).
Apart from losing history reporting, are there any issues to consider before making this change (e.g automatic account assignment)

Hello Shirley,
Here are the areas that I can think of:
1) Field Status Group for Cost objects- OB41 and OB14: For all the GL's that will be created as Cost Element, ensure that Cost Center is not a "Suppressed" or "Display" field, it has to be a "Required" or at least an "Optional" field. (Internal Orders, if used, need similar treatment)
2) Field Status Group for Profit Centers: Similarly, if you have made Profit Center a "Required" field, then you may want to make it "Optional" and allow it to be defaulted from the Cost Center or Internal Order
3) Profit Center Derivation: 3KEH / 3KEI: Entries in these tables, if any, need to be removed for the Accounts that are being created as Cost Elements.
4) Default Account Assignment: OKB9: In case you are not able to enter Cost Center / Internal Order at the time of FI Document entry, then you will need to include these in OKB9.
Hope this information helps.
Regards.
Ashish.

Change Profit Centre in Cost centre

Hello Experts,
I have to change profit centre in cost center (postings have been done on cost centre), how can I do ?
Thanks in advance.
Regards,
Catherine

Hi,
Once you post transaction to the Cost Center, we can not change Business Area or Profit Center assignment for the same Fiscal Year.
System will allow changes for the subsequent Fiscal Years though.
You cannot really reduce the number of Cost Centers. However we can restrict the validity period though. You can delete the Cost Center validity for the dates that do not have transaction with in the same Fiscal year as well.
Hope this helps
Regards,
Som

Cost centre & profit centre

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