Profit center assignment to material

Hi!
I have divided my profit center hierarchy in such a way - that I could easily prepare a COS profit and loss statement using them. Basically I have such profit centers like:
- Profit on sale of Goods
- Profit on sale of Materials
- Profit on sale of Service
- Costs of Production
- Other costs of sales
- Costs of Administration
As you can see I didn't reflect in this hierarchy an organization structure.
I was wondering which profit center could be used for Material master assignment... Maybe you could help me - cause I didn't have much in common with MM before.
I know that for sales order there has to be assigned one of:
- Profit on sale of Goods
- Profit on sale of Materials
- Profit on sale of Service
But I don't know whether it is OK to use them for materials master assignment. Can you suggest me some solution?
Best wishes,
Karol

Hi,
I think you can assign the following:
Costs of Production
Profit on sale of Materials
Hope this helps.
Please assign points as a way to say thanks.
Regards,

Similar Messages

Profit Center Assignment on material master

Hi,
We have not assigned profit centers on materials and there are line items that are going to unassigned or dummy
We are into utility industry. We have 3 Profit centers Headquarters, Water Operation and Power Operation.
We have spare parts and other materials which are used for maintaining equipment or service orders in water operation and also power operation.
So to which profit center we need to assign these materials which are procured and used for water operation and power operation.
Just not sure which of the 2 profit centers we need to assign the materials to.
Thanks,
Rajan.

Hi,
In standard you can assign one profit center in material master. But you can maintain different profit centers for same material but maintained in different plant.
In Finished goods case you can set Profit center substitution in 0KEM.
Hope this clarifies your doubt.
Regards,
Sany..

Profit center assignment to company codes

Hello,
We have a a scenario wherein our plants are our profit centers.
As these plants belong to a particular company code,the profit centers need to be assigned to only the company to which their plants belong.
Is this a correct statement or will there be any scenario which would require us to assign a profit center to multiple company codes.
Any input is highly appreciated.
Thanks,
Vikas

It is my understanding that I can assign my profit center to any company code as long as all those company codes fall under one controlling area.
I am looking for scenarios wherein given the set up we have ( plant as a profit center) if there would be any need to assign a profit center to multiple company codes.
If plant were not set up as profit centers and for example if Product groups(highest node in the product hierarchy) is the basis for defining profit centers then it would be necessary to assign this profit center to all company codes in which the material belonging to that particluar product group exists.
I am looking for scenarios where a plant is a profit center and since material belongs to a plant isnt it enough to assign this profit center to the company code to which this plant belongs to or are there any scenarios within the given setup which would necessiate the assignment of this profit center to multiple company codes.
Any input is highly appreciated.
Thanks,
Vikas

Userexit for populate profit center entry without material in T.code CORO.

Hi guru's
we are running T.code. CORO.. we want to populate profit center entry without material. can any one tell me the exact user-exit used for this and . can you tell me the procedure how to find the specific userexit trigger at that point while we are running any T.code.
Thanks in Advance..
GSANA
user exist in PP for transaction code CORO-process order without matl code to populate profit center entry, can u plz find out that & send it to me..

Thank you all for your valuable input.
Srinivasa, your suggestion is very good, especially when calculation of variances/WIP is required. But again as there is no cost relevant material where the WIP/Variances will be settled during settlement process?
1) PP need to create process order without material because changeover cost should not be charged to either material and capacity hours are consumed during changeover. 2) CO need to identify the cost of changeover which should be charged to cost center. So far we have achieved both of these two objectives by the following activities:
Creation of Process Order without material using CORO T.Code say 3 hours of changeover occurred we create order with quantity of 3 Hours. And confirmation of activities quantity 3 using COR6N so cost center is credited by 3 x rate per hour. As there is a separate Process Order type for Changeover we can identify changeover quantity and cost in a given period.
After contributors feedback in this thread I have come to conclusion that I don't need to assign Settlement Profile and PA Structure to Changeover Process Order type. So no need to run Process Order settlement. As there is no specific required for Changeover WIP/Variances as well.

Hi ... I want Internal orders and Profit Center related study material....

Hi
Friend
I want Internal orders and Profit Center related study material....i want to understand what these concepts...
Thank you

Hi
Internal order configuration:
I have uploaded 2 docs here
http://rapidshare.com/files/27424591/IOrder1.pdf.html
http://rapidshare.com/files/27424270/IO2.pdf.html
Regards
A
Assign points if useful

About profit centers assignment in Material Master

Hi Frnds,
Have a doubt to clarify. As far as assigning the (Cost centers and) Profit Centers in Material Master (MM01/MM02 ) is concerned, when we look at the costing views, there we have an option only to enter a Profit Center and not a Cost Center. Can anyone suggest to me in this regards.
My doubt is: When we purchase a Raw material/ Semi finished (in short any material), it is a cost incurred to produce a Finished product, which means this has to hit some cost center, first.
And above all when a PO etc from MM are made, there the purchasing clerk punches the RELEVANT COST CENTERS, then:
what is the use of defaulting Profit center in the material master,(without actually defaulting both cost and profit centers in costing views of MM).
(ii) when a cost object (profit center) is being defaulted, why not cost center?
Coz, primarily we need to know the cost in purchasing the material, then add up all costs and OH and then arrive at a selling price, thereby arriving at PROFIT which is where profit center is highly useful.
Plz suggest
regards
sandhya

Hi,
To clarify your doubts see my response below:
1) Only Costs can be assigned to Cost Centres. i.e.Balance Sheet items cannot be assigned to Cost Centres.
2) On the other hand Balance Sheet items can be assigned to Profit Centres.
When you purchase a Raw material or Intermediate it is not a Cost at the point of Purchase but it is only a Cost at the time of Consumption, if the same is going to be inventorised. In this case it cannot be assigned to a Cost Centre as the Inventory Account which is a Balance Sheet Account is debited in FI.
Only when the Material is issued to the Production line for manufacture of a Finished product, the Cost centre will be manually assigned. Further, you cannot assign a default Cost Centre to a material , as the material can be issued & consumed by any Cost centre and thus the Cost centre will be assigned at the time of issue.
If you purchase a material and if the same is not going to be inventorised but it is a consumable material, it is assigned to a Cost Centre as the time of purchase and it will be debited to a P&L account in FI. The Cost Centre can be defaulted from the Purchase Requisition or the Purchase Order as the case maybe.
Profit centres are defaulted in the Material master, as we need to generate Profit Centre wise Financial statements and the Inventories need to be posted to Profit Centres to generate Financial statements.
Hope this clarifies your doubts.
Regards,
Assign points if useful.

Materials management small differences - DIF - Profit Center assignment.

Hi,
We have created one G/L for posting the u201CMaterials management small differencesu201D at the time of generating MIRO document via transaction u201CDIFu201D in Tcode - OBYC.
For e.g. if the GR amount is 90 and IR (Invoice received from party) is of Rs. 91/- or vice-versa then for posting the difference of Rs. 1/- we have made the above assignment.
System is generating the line item for the u201CSmall Diff -Invoice Verificationu201D but posting automatically to a "Dummy Profit Center u201C in the absence of any other data.
Our point is that we want to change the profit center to the related Business area, which is there in the line item of u201CSmall Diff -Invoice Verificationu201D account.
We tried the FI substitution (Tcode u2013 GGB1/ OBBH) for the Profit Center derivation on the basis of Business Area but that is working with the FI documents (Manual FI entry) only and not with the automatic line generation like MIRO in the above case.
Later on I tried Tcode u2013 OKB9, but in that case after giving business area wise cost center substitution, system is correctly showing the entry (in simulation mode of MIRO transaction) in the required Cost Center & on that basis in the Profit Center, but still system requires u201CCO-Objectu201D
Initially we tried other way of creating a Cost Element under the category of u201C11 u2013 Revenueu201D to maintain Business Area u2013 Profit Center link but still in that case also it requires co-object hence turned to changing the Cost Element Category to u201C1 u2013 Primary Costu201D for capturing Profit center on the basis of Business Area u2013 Cost Center link since basically G/L u2013 u201Csmall Diff -Invoice Verificationu201D we have created under u201CExpense Groupu201D.
Our requirement is to post the entry in related profit center per Business Area in the line item of "Small Diff -Invoice Verification" since there are 6 to 7 business areas, which are active in system.
Regards,
Shridhar

Hi,
Thanks for the reply. But I would like to correct you. I have mentioned in my subject line - "DIF" i.e the Transaction Key maintained in Transaction Code - OBYC for posting the small difference (Between GR and IR values) arriving at the time of MIRO transaction posting.
Now meanwhile I have come across u201CSAP Note : 32654u201D which mentioned that "Account assignment for the transaction (KDR, DIF, UPF) on the highest level i.e. the 1st screen where we set the Cost Center or Profit Center assignment to Cost Element with Acct Assignment details (1 or 2 or 3) is possible.
Same is not possible on details level means Acct Assignment details level per Valuation Area or Business Area for Cost Center or Profit Center linkage (2nd screen of OKB9).
Please do correct me if I am making any wrong statement.
Now would like to have an advise about the transaction Code - OKC9 with the scenario (MIRO document u2013 Dummy Profit center linkage) that I have mentioned above.
Do I require to maintain OKB9 (At highest level) and then need to work out CO- Substitution via OKC9 ? Or OKC9 is enough to cover my scenario ?
Do any body have a knowledge about that? Points will be assigned.
Regards,
Shridhar

Manual Bank Subaccount Clearing 1:N – Profit Center Assignment within NEW GL

Hello guys,
What is the common practice to do Manual Bank Subaccount Clearing for Vendors outgoing payments? My main concern is Profit Center Assignment within New GL.
The business process is:
Payment Program (F110) creates multiple JEs to Bank Subaccount with different Profit Centers inherited from Vendor’s Invoices
JE #1 (GL View)
Debit:   Vendor_1               Profit_Center_1    $400
Credit: Bank Clearing GL   Profit_Center_1     $400
JE #2 (GL View)
Debit:   Vendor_2               Profit_Center_2     $600
Credit: Bank Clearing GL   Profit_Center_2      $600
When the payment is showing on Bank Statement in a lump amount, a posting with clearing should be done to make an entry on the Main Bank Account and to clear Bank Subaccount (F-04).
Credit: Main Bank GL   Profit_Center_????? $1,000
Debit: Bank Clearing GL   Profit_Center_1      $ 400 (PC assigned automatically by the system within the clearing)
Debit: Bank Clearing GL   Profit_Center_2      $ 600 (PC assigned automatically by the system within the clearing)
If Profit Center is not filled manually in Main Bank GL account line -> the system issues “Balancing field “Profit Center” in line item 001 not field”
Please share your experience whether a user makes multiple entries to Main Bank GL as a number of Profit Centers in ACH Clearing GL, or a Dummy Profit Center is used….
Thank you in advance

Hi
In most of my projects, a common profit center is defaulted to the Bank Account through FAGL3KEH in a new gl environment. This is because the payment function had been centralized and so it was booked to the corporate profit center which was also a common profit center.
However, it would again depend on your business requirements as to how they would like to see the profit center reporting. You may look at a substitution through an exit to default the profit center for the main bank gl.
Regards
Sanil

Profit center assign in Copany code and controling Area

where Profit center assign in Copany code and controling Area ?

Hi,
Company code, Controlling Area, Profit centre, Cost centres are created by FI/CO functionals.
Pl. discuss with your FI/CO counterpart.
My suggestion is that, don't create yourself, because it integrates to lot of other areas.
Just for learning purpose, you can go to SPRO-Controlling-Profit centre accounting.
Madhava

Changes to Profit center assigned to cost center

Hi
We have a scnario in which the profit center assigned to the cost center master has to be changed. We have been advised also to change the validity period of the same from the date of change of the profit center .However, the cost center has been used to for some data postings with the old profit center maintained in the cost center master. Now my query is:
1. What is the impact of changing the profit center in cost center master? In our case, some data has been posted to the cost center when the old profit center was maintained.
2. Why should we change the validity period of the cost center after changing the profit center assigned to the cost center?
3. Also, what is the way to transfer the entries which have been posted to the old profit center to the new profit center?
Regards
Sanil Bhandari

hi,
1) The impact of profit center is more in the cost center. when ever we assign profit center to cost center. the cost will be updated automatically. so there is no direct posting in profit center only statstical posting are generated.
2) second one when we want to create profit center first chek it out profit center valid and upto. if same is not maintained in creation of cost center . so u must have to change the validity periods
3) i am not sure this one i thing 7KEH OR 1KEF TC is there any way tommorow i will give the answer this questions.
if my answers are wrong plz correct and replay to my id [email protected]
thank you

Subcontract PO - profit center assignment

Hi,
Does anyone know how to check on profit center assignment for a subcontract PO ?
We're currently have the FI posting on the Goods Receipt but it is assigned to the wrong profit center.

Hi,
Check OKB9 Settings as well as FAGL3KEH settings in the system to identify cost centers and profit centers attached to cost elements, GL Accounts.
Thanks,
padmaja

Change profit center assignment in cost center

Hi All,
We have around 20 cost centers and assigned to 10 different profit centers.From 01/01/2011,we would like to change Profit center assignment in cost centers.
all cost centers postings should post to old profit centers till 12/31/2010 and from 01/01/2011,postings should go to new profit centers.
What is the best way to achieve this?any help is appreciated.
Thanks,
Anusha

Hi Ajay,
Thanks for your reply.profit center changes are working with analysis period changes.
i have one more issue here,i can't change hierarchy in cost center and getting errors..
Message no. KS042
Diagnosis
Field Hierarchy Area to be changed must be unique for the entire interval. You selected a change interval which does not include the entire period. Any change in the field would result in an inconsistency.
I have try to change time depended field in configuration.system is not allowing for field "KHINR" in OKEG TC.
any help is appreciated...
Thanks,
Anusha

Profit center assignment to company code

Hi,
We have 1 controlling area & 3 company codes A, B & C. We are restructuring Cost Centers & Profit Centers for company code A. Out of the 3 company codes, B has no separate profit center standard hierarchy. The cost centers of B are currently assigned to profit centers of A.
Now that we are changing all the cost centers & profit centers of A, how do we deal with the cost centers of B which are assigned to the old profit centers of A?
If I try to change the master data of Profit centers of A to exclude the company code assignment of A & only have company code assignment of B so that the cost centers of B are the only ones assigned to old profit centers of A, system throws an error saying that :
Cost centers assigned to the profit center are contained in the company code in question.
Procedure:
    Remove the existing assignment between Cost center **** and profit
    center ***. Note that other assignments might exist, which you will
    also have to remove before you can delete the profit center. For an overview of all existing assignments, use the assignment monitor.
Is there any other solution to this? Can the Profit center assignment to company code be time-dependant?
Or will we have to keep the old profit centers of A unlocked for cost centers of B & use some validations to prevent posting of Compnay code A transactions to old cost/ profit centers.
Regards,
Sangeeta

Hello,
We are having the same issue. Would you please advise what solution you used to correct this.
Thanks,
Jordan

Where we can find out customer related profit center assignment.

Hi gurus
where we can find out customer related profit center assignment.
Thank you
i will assign points.

Hi,
Sure you can find that, but before that you need to run F.5D and 1KEK for transferring customer detail to profit center.
After that you can this report S_ALR_87013343 - Profit Center: Receivables.
SJ

Profit Center Assignment for Component of Sub Contracting PO

Hello all!
I apologize in advance if this is not the correct forum to post this question in. Additionally, I am an ABAPer with a focus in SD and MM, so much of FI is foreign to me.
To the problem...
Currently when a MIGO 101 is processed for a Sub Contracting PO Line item, a consumption transaction (543) is generated for the component materials on the PO Line. These consumption transactions are "tied", this is how my finance co-worker described it, to a Cost Center dedicated to Sub Contracting.
We would like to change the configuration as follows:
When the consumption transaction posts, it "ties" to the Profit Center (and thus cost center) of the Parent SKU (actual material received on PO Line) of the transaction.
Is this possible?
Thank you,
Steven Coolbaugh

Hi Steven:
Not sure if I understood correctly your requirement but let me try to explain:
For consumption items (Account assignment category K in PO line), it is consumed immediately on GR and consumption is posted to a cost center attached to PO line. And that is what happening in your exising process also, right?
Now when you said "TO Be" change as consumption ties to the profit center (and then to cost center) of parent SKU??
It is other way round. A cost center is linked to one profit center (whereas as a profit center can have many cost centers attached to it). Also since profit center is not a TRUE cost object (it is a statistical object), PO line would need a true cost object like cost center. So based on the information you provided in your post, it is not technically possible to book consumption at profit center (And then to cost center).
Are they two separate cost centers (one for sub contracing and one for Parent SKU)? If yes, can you attach parent SKU cost center to PO line (from business point of view) so that consumption posts directly to parent SKU and then to the attached profit center?
Hope it helps.
Thanks.
Rahul

Profit center assignment to material

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