Migration from Business Area to Profit centre

Hi All,
My client currently uses the business area functionality for management reporting (to capture brand specific financial data). Due to the inherent challenges encountered using business area the strategy now is to migrate to profit center accounting.  I’d need to establish a road map for the migration and was wondering if anyone has any pointers on how to approach this requirement.
Thanks and regards
Frank

Hi,
My ex-company used to use BA for reporting, and subsequently they moved over to PCA.... with minimal impact of course.
A few considerations :
1. Is your PCA active?  Rightfully the profit centres are usually set up as statistical cost collector.... but you might need to check if there is any configuration that prevents cost/revenue from posting into PCA
2. Is the hierarchy in PCA properly set up?  Functionally speaking, BA is no difference to PCA since they are both measuring the business by funcational area.... You can create standalone hierarchies in PCA to capture the business reporting, such as legal reporting structures, or Line of Business structures.
3. What kind of reporting is used for Business area.... are they present in PCA?
I think you'd have to think through the steps carefully... if point 1 is met, the change in reporting would be simple enough.  Otherwise, you would have to consider how to bridge the data gap.
Hope this helps.
Cheers,
Gimmo

Similar Messages

  • Business area Vs profit centre

    hi,
    can any one tell me what are the main differences between business area and profit centre.

    Hi Shanker
    Business areas are used in external segment reporting (over and above company codes) based on the significant areas of operation (for example, a particular region, a branch, product lines) of a business enterprise. Financial statements from business-area wise cannot be drawn up for commercial and tax law. Business area reports (e.g balance sheets and income statements for specific area) are used only for internal reporting purposes.
    Profit Centres on the other hand are internal areas of a company that the responsibility for achieving target profits or productivity goals.
    The objective of BA is more for reporting purpose whereas PC allows to analyse areas of reponsibility & to delegate reponsibility to decentralised units.
    Thus PC are basically treated as companies within a company & ensures effective control.
    I hope this helpls.
    Regards
    Kavitha
    Edited by: Kavitha Emani on Aug 6, 2008 5:20 PM

  • Business area and profit centre field to make mandatory in all transactions

    Dear Team,
    My client wants to make the above mentioned fields mandatory while entering any business transactions. viz. MM,FI / SD transactions. He wants to capture the details Business area wise as well as Profit Centre wise.
    Please let me know whether
    1.  I need to make "Business Area" as well as "Profit Center" field mandatory in "ALL THE FIELD STATUS GROUPS"of particular field status varient. If not which particular field dtatus groups to use. &
    2.Whether "Profit Center" or "Cost Center" to make mandatory and to which GL.
    Please help.
    Waiting for your reply.
    Thanks and Regards
    Sagar

    Hi
    A good way to make this Check compulsory in case Document Splitting is active in your system.
    Follow the path
    IMG>Financial Accounting (New)>General Ledger Accounting (New)>Business Transactions>Document Splitting>Define Document Splitting Chracteristics for General Ledger Accounting.
    Here you can make splitting active for Both business Area and profit center.
    If any where in the posting system does not find either of Business Area or Profit Center, it would give an error
    Thanks & regards
    Sanil K Bhandari

  • Shiftting from  Business area  to Profit center

    Dear Friend
    I have an Issue regarding  New GL
    At present my client  is using Business area mandatory in new GL   . we have also created profit center  but  spilliting  is done according Business area.
    Now  My client  want to  go for Profit center accounting  they want to make Profit center mandatory..
    can u advise me if i go for  it whats are the Problem i am going to face.
    Is it advisable .
    and what are the step i have to  take  care.
    Please advise me in details
    Thanks in Advance
    Jain

    Hi Raj,
    I tell u one thing business area and profit centers are assign in Cost Centers ok and Segments are assign in Profit centers so based on this the document is automatically splitting ok if u want to change the business areaas optional and PCA with mandatory thru OBC4 ok.i think u can mentain Businee area as a Segment so it is working very effectively now a days all of the companies are follow with out business area becoz if u fallow business area automatic postings are not update directly and also some of the problems inmonth end activies check which is better.

  • Business area and profit centre

    Friends,
    Please tell me difference between profit center and business areas. If reporting can be done using both of them in similar fashion, why can't only one of them be used, instead of using both of them?
    There should be a logical distinction between them, please explain that.
    Thanks,
    A

    Hi,
    1. Main distinguishing factor is that Distribution or assessment within profit center can be done for allocation of overheads.
    No such allocation functionality is possible within Business area.
    2. Hierarchical structure for profit center can be created.
    Hierarchical structure for business area is not possible.
    3. Business area does not need to be attached to any organization structure.
    But profit centers can be created under the controlling area.
    4. PCA helps to arrive at profitability of business unit
    Business area is used to segregate FI transactions pertaining to various
    5. Profit Center Accounting as the Product manufactured.
    Business area would have been useful only when the Areas of Business are Different.
    6. Business area concept is used for making strategic decisions by the management whereas the primary purpose of profit center is accounting.
    7. PCA would be much more suitable. You may need some derivation rules for Populating Profit centers, but it would be much more easier than using Business area and reconciling FI-CO on monthly basis.
    8. The main difference between profit centers and business areas is that profit centers are used for internal management whereas business areas are geared more towards external purposes.
    9.  Business area satisfies accounting purpose while Profit Center  satisfies CO purpose.
    10.  Business area was used as function oriented (e.g. SALES, ACCOUNTING etc)
    as per old school where we used to separate B/S as per functionality. But Profit Center  is more related with group of products or COS (COGS) view.
    SKS

  • 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

  • Business areawise and profit centre wise debtors balances

    Hi All,
    I want to know the standard T code to see the debtors/Creditors balance report based on business area and profit centre wise (not debtors aging report).
    Thanx.
    SP Shukla.

    Hi,
    Use t.code: SARP, then select report tree as FIAR then click on display icon, here you will get no of reports for customers.
    all the best
    Prasad

  • Profit center derived from business area

    Hello,
    We are having a problem with one of our business areas.  We are posting F-53 disbursements from a custom program (using a BDC).  When we fill in the initial screen, we currently fill the business area field (GSBER).  The profit center (PRCTR) is then derived from the business area.  This is working for all of our business areas except one.  For this one particular business area, an invalid profit center (one that doesn't exist) is somehow being derived.  Where is the derivation determined?  I've seen transactions 3KEH, 3KEI, and 1KE4 all mentioned in reference to derivation rules; unfortunately I can't access any of these (no authorization), so I can't even look to see whether we have any entries there or if those transactions are relevant to this problem.  If someone can tell me which transaction or table would control the business area to profit center derivation, I can at least have someone with the correct authorizations take a look.  I was able to look in FMDERIVE, and I don't see any relevant strategies there.
    Thanks,
    April Erickson
    Solved: Entries were in 3KEI.  The entries there had been moved to test and production, but the corresponding profit center entry in CEPC had not.
    Edited by: April Erickson on Feb 11, 2009 5:07 PM

    Hi sachin
    Documnet type RE is given business transaction varaint 'vendor invoice'.
    In this input tax account item category is assigned in the splitting rule.
    In fact, system inherits BA and PC from opposite line item.
    But when we substitute other PC in input tax account then the system stops inheriting for BA also.
    So, my question is whether inheritance will apply to all characteristics only or it can be applied for one characteristic ( BA) and other charactriestic PC can be derived in another way using substitution.
    Regards
    S.Radhakrishnan

  • Derive segment from business area

    Dear Experts,
    Is there an easy way to derive segment from business area when making GL postings ?
    Thank you for you answer.
    Best Regards,

    Hi,
    To what I know, you'd probably have to write a user exit, as well as maintain a mapping table.  The fact is that segment works almost similarly to business area and hence there is not connection between the 2.
    The closest I can think of is the connection between cost centre and profit centre.  Cost centre contains the business area assignment and profit centre the segment assignment.
    Hope this helps.
    Cheers,
    Gimmo

  • 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

  • Business Area and Profit Center In Document Splitting

    Hi,
    We are using Business area and Profit Center characteristics for document splitting.
    In one transaction, the Business area and profit centers are defaulted through the cost center.
    The document is successfully split in respect of the business area, but the profit center is not filled, thereby giving error while posting.
    Please suggest.

    Hi,
    Actually, we have all three scenarios, profit center, segment and business area..
    As suggested, we have checked all field status relevant.. profit center is optional in all cases..
    Now, Pls consider the scenario without business area in document splitting characteristics..
    If I post an expense, profit center is picked thru cost center and segment thru profit ctr. The vendor or bank line item inherits the characteristic values from the previous line item.
    Now, in addition we have business areas in doc splitting characteristics.
    Business area, again is populated thru cost centers, along with profit ctr and segment.
    The business area gets correctly populated in the vendor line item.. but the profit center doesnt.
    Please let us know the reason..
    Edited by: Swapvik on Mar 23, 2009 4:07 PM

  • 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

  • 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.

  • Where can I find information on migrating from Business Objects 5 to XI R2?

    We want to migrate several Business Objects implementations - some of which are Business Objects 5 and some Business Objects 6 to consolidate them into a XI R2 environment.
    I have the document that describes migration from 6.x to XI R2 but what is the process for migrating from Business Objects 5. Do I need to migrate from 5 to 6 and then follow the 6.x to XI R2 migration?
    Any pointers to additional hints and tips on migration or how to estimate how much effort is involved would also be welcome.
    Thanks in advance for your help.

    Hi,
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    u2022 Select the option u2018Import universes u2018.
    Click Next.
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    Select the third option: Import all the universes and connections that the selected Web Intelligence and Desktop Intelligence documents use directly.
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    Click Next.
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    u2022 Overwrite object rights
    When you re-import an object, its associated security rights will overwrite the rights of the matching object you imported earlier.
    If you decided not to import security in the Security Migration Options dialog box, then the Overwrite object rights option is not relevant, and is therefore not available.
    If you don't select any overwrite options, the matching object in the destination repository will not change when you try to import it again.
    Note: This dialog box appears only if you select update as the import scenario.
    Click Next.
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    Click Next
    11] Information Collection complete dialog box appears.
    Click Finish
    12] Import Progress dialog box appears.
    Click Done
    Hope this helps !!
    Please revert in case of any queries.
    Regards,
    Deepti bajpai

  • How to migrating from Business Objects to OBIEE

    Hi,
    I have one query is it possible migrating from Business objects to OBIEE ? if, yes could you tell me any one regarding this requirement.
    Advance Thanks.

    Hi,
    I don't have any documentation link , we need to design rpd based on BO Universe and BO reports functionality.
    first observe what are the physical tables used in universe those physical tables improted into physical layer of obiee rpd give physical joins. In BMM layer design hierarchies, calculations and outerjoins all these things done in BMM layer thats it.
    Regards,
    Naresh

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