Exchange Valuation difference to be disbtributed on profit center

Dear All,
I want to distribute the exchange rate valuation difference to original profit center, what steps should be follow? How to distribute the same?
Regards,
Rajeev

Hi,
Please note that the Realized Gain/Loss on Forex GL Code is a Profit and Loss Account and a Cost Element. Because of which, it picks the Profit Center from OKB9.
As far as I know, we cannot avoid Profit Center Document in this scenario.
Regards,
Kiron Kumar T.

Similar Messages

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

IU Elimination Difference Subassignments (Business Area and Profit Center)

Hi experts, it's my second tread in the forum and is in one day, I'm expired.
 
 
Let's clarify the situation.
 
 
At the past I'm using the parameters settings of IU Eliminination Difference Subassigments with fixed values, now, with our necessity, we question SAP how to do a interunit elimination receiving the business area and Cons. Profit. Center from the trigger at the differences, and it apparently was simple solve, we just need to mark the "default value" flag and voila, system will do what we need, but is not so simple how we think.
 
 
In productive environment, we have data since June/2009, and we want to change this from Jan/2010, but elimination is cumulated, and I suspect SEM-BCS is trying to correct the past.
 
 
Does anybody pass this situation ?
 
 
What we need is on every elimination on selection items and the difference items receive the business area and cons. profit center from the trigger (this have to remain with the origins), and the total value of elimination on period don't have to change, do you understand ?
 
 
When change the configuration of the task and execute that, the eliminaton value change too ? We suspect it is
because we have data before this period.
 
 
If you need more explanation, please advice me, I will give more details.
 
 
Here we are in SEM-BCS 600 EHP 2
 
 
Best Regards
 
Alexandre Mendoza Collepicolo

The breakdown category and the corresponding data is the same in the source system. I think I did`t express very well.
I will put my understand about the default flag of the difference screen: This is used to try to get the subassignments from the items which we select on the preview screen not the fixed parameters. i.e.: Business Area.
On January, we decided to get the subassignments on difference from the items on selection screen, for this we flag the default value, and re-execute the elimination on the monitor, but, when we execute this, the value is entirely wrong/different from the other, we suppose when we flag that and re-execute the elimination we get more line of elimination on total records with the business area, but that's not what happened, we have strange value with a total of elimination very different.
Is it clear the operation ?
I contact SAP and they are analyzing the case, but if anyone had a similar problem please advice me.
Best Regards
Alexandre Mendoza Collepicolo

Difference between business area and profit center

hi all
could you please tell me about difference between business area and
profitcenter.
thanks,
regards,
chennuri.

HI
Read below
Profit Center - The profit center view shows the various
internal areas of responsibilities. Objects such as cost
centers, materials, etc can be used for profit center
analysis. Profit center can be used to determine the
revenues, costs, and profitability for specfic areas of
responsibility.
Business Area - Business area forms an important part of
external reporting. Analysis of various segments, product
divisions, regions etc is possible using business areas.
Business Area: This is optional
This can be used cross compane codes
This is for Internal Purpose
It is not Legal Entity like Co Code
The transation entered in Business are, Debit total will
not tally with credit total
Since it is used for segment wise or area wise or line wise
this is used for internal report purpose only .
Balance Shhet and P & L stataments can be drawn on segment
wise
Profit Centre: Generally in terms of SAP or Finance the
meaning of Profit centre is to know the profitabilty.
In same manner , The managers wants to know the ROI from
their investments, obviously we nned to use the tool.
This ROI may be geographically or area wise or division
wise. P.C provided us profitablity of the particular area
for internal purpose ( Only for Internal )
Business Area is an optional entry.Whenever company wants
financial statements businessarea wise we can maintain
BAs.And also we can maintain BA as Segment Wise,Product
Wise,Geographical Location wise.
Profit center is used to know the profits of companies.PC
is also used for to know the profits as aProduct
wise,Segment wise,geographical location wise.If anything
wrong inthis answer plz correct me..
Hope this helps
Good Luck
Hari

Valuation view assign to Group, Legal, Profit center currencies

Hi all,
What i understood the valuation means. it views the business transaction in different ways and it will be assigned based on client requirements.
My question is:
Currently, i am using two different valuation i.e, Group and legal valuation and assigned to Group and company code currency respectively and Same thing maintained in Controlling Area (Combination of Group and Legal valuation) under currency settings. We posted number of postings based on this config.
Now, my requirement is can i change this config. (valuation from Group to Profit center) in mid of the year. if it so what are merits and demerits for this config.
Thanks and Regards,
Raghu

I didn't understand your situation...

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

Small Differences posted to the same profit center

Hello dear all,
My problem is following:
User post a document via MIRO.
This document generated an accounting entries. All line are posted with profit center 1000 except one line was posted with profit center 2000.
This is because the MM small differences (customizing in automatic psoting in FBKP) are customized to be posted to the account 658000.
In OKB9, the account 658000 is linked to the cost center C0ZZ001 and the cost center COZZ001 is linked to the profit center 2000 in his master record and it's not possible to remove/change it since there transactions already posted in FI.
That's why the system post automatically the differences with profit center 2000.
User don't accept this and i don't have idea how to resolve this issue, since small differences should be posted always to the same G/L account.
My question is: Is there a possibility to let system take always the profit center of the invoice for all lines ?
Thank you in advance

Hello Tarek
Option 1
When posting the original transaction you can replace the profit center 2000 with Profit center 1000 by over writing.
Option 2
You can repost the small difference amounts from Profit center 2000 to 1000 using transaction 9KE0.
Option 3
You can reallocate the 2000 small difference amounts to relevant profit center 1000 using distribution cycle. Transaction:4KE5
Thanks
Prasad

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

How can we settle price diff. in profit center valuation to COGS acc?

Dear All,
We have activated multiple valuations/transfer prices.
We do perform cross company code material sale. We have assigned each profit center at company code level.
We have set transfer price variant in t.code 8kez and have customized accounts in Controlling-Profit Center Accounting-Transfer Prices-Settings for Internal Goods Movements -Define Account Determination for Internal Goods Movements.
We had got posting logic described in http://help.sap.com/erp2005_ehp_05/helpdata/en/eb/13811243c411d1896f0000e8322d00/frameset.htm
Now after actual costing run price differences in profit center valuation were not transferred to next level as we expected.
They have stayed as not distributed at sender (company code) profit center level.
How can we distribute price differences in profit center valuation to COGS account of sender profit center defined due to
http://help.sap.com/erp2005_ehp_05/helpdata/en/eb/13811243c411d1896f0000e8322d00/frameset.htm?
With best regards,
Kamila.
Edited by: Kamilana Zhakenova on Dec 25, 2011 10:56 AM

Dear Gurus,
There is an addition to post above.
Transfer price was defined in SD module in Sales and Distribution-Basic Functions-Pricing-Pricing Control-Define Condition Types.
Now it is taken during cross company code sale from scheduling agreement and invoice.
(Please, do not take into account that we have customized transfer prices in 8kez)
But the issue is price differences in profit center valuation settlement.
They do settle to the next level for receiver company code like in group valuation.
We need to settle them to COGS account at company code sender side.
How we can do that?
With best regards,
Kamila.
Edited by: Kamilana Zhakenova on Dec 26, 2011 11:37 AM

Group Currency in Profit Center Valuation ?

Hello,
We have 3 currencies configured, 1. Local Currency(10), 2.Group Currency(30) 3.Group Currency in Profit Center Valuation(32).
What do you mean by Group Currency in Profit Center Valuation?
Appreciate your help.
Thanks
Srinath

In FI you can manage up to three parallel valuation methods to support transfer prices. The valuation bases are stored using the additional currency and the ledger facilities.
You can use the following valuation methods: 0 - Legal valuation, 1- Group valuation, 2- Profit center valuation.
Also you can have the following currencies: 10 - Company code currency, 30-Group currency, 40-Hard currency, 50-Index-based currency, 60-Global company currency.
The currency and the valuation method are combined in the financial accounting document to form the currency and valuation type. For example, if you want to make a group valuation in the group currency, you enter currency and valuation type 31 in the company code.
IN your case a group valuation in group currency and a profit center valuation in group currency, as well as the legal valuation in company code currency is defined.
The following settings are made in the company code:
The corporate valuation and the profit center valuation are managed in the second and third ledgers, which you have to create yourself. The valuation category used is stored in the ledger master data. You need to enter the relevant currencies in the ledger master record.
You post complete values to each ledger, not delta values. This presentation has the advantage that the parallel valuation methods can be managed in logically and physically separate ledgers. This enables a simple authorization control when accessing the datasets of the parallel valuation methods.
Different valuations can also be stored in the Special Purpose ledgers, just as in the general ledger.
In each ledger master record, you can define whether the ledger manages a legal valuation, a group valuation, or a profit center valuation.

Profit Center DIFFERENCES

Hi
I was checking the Profit center´s values between that transactions ( FAGLL03 / s_pl0_86000028 ) and the difference is of 5000 euros.
I check the account ( EJ: 1720090 ) and 3 Profit centers ... If i check the total is Ok, but for individual are differents :
Example:
s_pl0_86000028
Account 1720090
Profit center :
411000 : 73826,76-
412000 : 1394879,78-
Total: 2328215,15-
FAGLL03
Account: 1720090
Profit center:
411000 : 68377,0-
412000: 2259838,15-
Total: 2328215,15-
The total is the same, but each profit center is different.. Why sap is working like that? Any idea ?? For my is really strange cos should be the same values.
Thank you
Regards
Edited by: junior1108 on May 6, 2010 5:53 PM
Edited by: junior1108 on May 6, 2010 5:53 PM
Edited by: junior1108 on May 7, 2010 8:57 AM

Was layout problem , transaction FAGLL03

Transfer prices for Profit Center

Hello Gurus,
SAP describes the following regarding transfer prices
"In order to use transfer prices in the R/3 System, you need to store multiple valuation approaches in parallel throughout the accounting application components"
Does it mean if transfer price are set for valuation of internal goods movement between profit center, multiple valuation should be activated in other areas like FI (through currency and valuation profile), CO and MM (through Material ledger)
Any prerequisites to be done in FI and CO for this activation for transfer prices, not getting the right approach between multiple valuation and transfer prices
Any help is appreciated!!!
thanka
Nellikka

SAP provides mechanism to capture various prices involved in transfering goods to another intercompany or on behalf of intercompany. They are
Legal price (recorded in the company code and reflected in financial statement report to the country tax authorities)
Profit Center price (This price is agreed upon between the profit center managers) and
Group Price (The bare price, with no profit element, The group profit readily provides the profit made by the group, in the company that sells the goods to the final customer).
Once activated, the transfer price cannot be reversed within SAP. Also the Material ledger need to be activated with transaction based price determination to capture PC and Group prices.
To your question, "Does it mean if transfer price are set for valuation of internal goods movement between profit center, multiple valuation should be activated in other areas like FI (through currency and valuation profile), CO and MM (through Material ledger)"
the answer is yes.

Business area and profit center

plz can anyone explain me what is the diffrence between business area and profit center.

Business Area is a type of organizational unit structure, primarily used to facilitate external segment reporting across company codes, covering the company's main areas of operation. Business Areas run across company codes. The relationship is n:n. Business Area is part of FI.
Profit Center is also a type of organization unit structure, used for management/ internal controlling purposes. Dividing the company up into profit centers allows one to analyze areas of responsibility and to delegate responsibility to decentralized units, thus treating them as companies within the company. The profit centers also run across company codes. The relationship is n:n. Profit Center Accounting is part of Enterprise Controlling.
While it may look apprantly that both Business Area and Profit Center do the same kind of analysis and reporting, with in SAP internal architecture they are kept in different modules and different tables.
SAP Note 321190 provides the difference betwen Business Area and Profit Center, which you can get from SAP Service Market place.
SAP has maintained Business Area from 4.6B onwards, while there are enhancements happening in Profit Center side.

Relationship b/w profit center Vs plants

Dear FI-CO guru's
Can u explain what type of relation ship can we maintain plant to profit center , is there any assignment to plant vs profit center?
and explain both aspect of view relationship between plant vs profit center
thank in advance
Regards
A.Guru prasad

Hi,
as Sreekanth explains it is not a 1:1 plant => profit-center assignment but a plant => plant view in material master (eg Costing 1) => profit center assignment which makes a big difference.
Example: plant 1234, profit center 1234_1, 1234_2, in material master plant view plant 1234: one material A is assigned to profit-center 1234_1, another material "B" is assigned to profit-center 1234_2.
Thus there is no T-Code that shows such a relation of plant / profit center.
What you can do is to report table MARC (via SE16, SQVI, SQ01) and search for all the MARC-WERKS / MARC-PRCTR combinations that are maintained in your company.
best regards, Christian

Dunning on profit center level

I have following situation:
I have customer which have 4 open items relevant for dunning. The difference between then are the profit center. If I run the dunning and use free selection profit center the system selects only 2 items (correct). However if I want to select the last 2 items on this customer the system selects them but says that the customer has been dunned already. Only 2 items have been dunned the others not. Now the question is whether the standard SAP dunning allows to use the free selection (profit center) but it won't work properly since the customer can be dunned only once for certain level.
Please advice.
Best regards,
Krysia

Hi
Free selection tab filters the line items from being dunned (on selecting exclustion).
In your case, customer master is already updated with the dunning level. As the standard SAP not allows you dun agian at the same level.
Either you have to change the master data / use the dunning area.
Hope iam clear
VVR

Exchange Valuation difference to be disbtributed on profit center

Similar Messages

Maybe you are looking for