Profit center is posted to asset account??

Hello experts,
I wonder it is correct that profit center is posted to asset account.
Now our B1 2005B does that.
For example,
In AR credit memo (or Sales return) , we input profit center XX into the documents.
Then B1 create Journal Entry as below;
Dr
Sales Revenue 100 , profit center XX
Inventory 50, profit center XX
Cr
AR 100,
Cost of Goods Sold 50, profit center XX
Inventory account is asset account, so I'd like to know this is correct and SAP's spec ? or SAP's bug?
Please give your advise,
Kaori

Hi Kaori,
The functionality is slightly different in the B version so I can tell you how it working in the A version and maybe you can verify this.
The Profit Center should only be allocated to accounts that has been defined as Account type 'Sales' or 'Expenditure'. If the Inventory account is given this definition it will allocate the profit center to the inventory as well.
Normally by default P&L account are set as 'Sales' or 'Expenditure' and Balance Sheet accounts set as Account type 'Other'.
Hope it helps.
Jesper

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Profit Center not populated in Asset Transactions

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We are trying to post asset transactions. We are on ECC 6.0 with New GL and document splitting on profit Center. while posting the periodic depreciation, system is not allowing posting of the document, saying that profit center is not populating in the line item. Pls suggest.
Regards
Rupal

Hi
You need to check the following:
1. The cost center settings in T Code ACSET
2. The splitting characteristics in the menu path:
IMG>Financial Accounting (New)>General Ledger Accounting(New)>Business Transactions>Document Splitting>Extended Document Splitting
3. If cost center is a required field in your asset master and if you have assigned a cost center in the asset master
4. If a profit center has been assigned in the cost center master assigned in your asset master.
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Sanil K Bhandari

How to bring Profit center field in to asset master

HI,
We are having new GL Profit center scenario active. My question is
1.How to bring Profit center field in to Asset Master?
I am not finding the field"Profit Center" under the configurations step Asset Accounting>Intergration with GL Accounting>Additional Account Assignment objects>>Activate Account assignment objects.
I know how to do it if it the Profit center field appears in the above step.HOW TO INCLUDE in the above step??Is there any prior activity I need to do?
2.If I could see the Profit Center field in the above step,then I can add it in T Code ACSET and select the field in Asset Screen Layout,so that it can come up in Asset Master.
If question#1 can be answered it will be great.
thanjs
hinfi

Hi,
Until some years ago Profit Center did not exist in FI-AA master data. The Profit Center was derived from other objects (like the cost center) during posting, but there was no way to enter a Profit Center directly in the asset.
Asset master data has been enhanced with EHP 5 to contain also fields for Profit Center and Segment. To make use of that functionality you need to activate the Business Function for "Segment Reporting" as explained in the Link posted by Jayj before.
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Display of Profit Center field while creating asset in AS01

Dear Experts,
I have a requirement of displaying profit center field while creating asset in AS01. Currently there is no option of profit center in AS01. My client uses the profit center reporting, so they want to assign a profit center at the time of creation of asset in AS01.
Is this possible to display profit center field in AS01, or else any other option to tackle this issue.
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Juned

Hi,
You can only have COST CENTER in asset master, but not profit center.
You have to maintain the respective PC in cost center master data only.
If Cost Cetner field is also not in AS01, then you need to activate it first.
SPRO->FA->AA->Integration with GL->Additional Account Assignment Objects->Activate Account Assignment Objects.
Here you need to activate COST CENTER field. Now you will be able to change the field status of cost center field in screen layout for asset master data as REQUIRED field. and SAVE
Then in AS01 you can enter COST CENTER
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How to update profit center in posted document without profit center ?

HI,
I want to know,
How to update profit center in posted document without profit center ?
So that i can get my profit center accouting report proper.
Thanks
Nilesh

There is a long story about profit center accounting. I assume you are using Classic PCA, this means you can see the PCA documents. And the solutions is below:
For P/L account, even you don't maintain cost element for it, if you maintain the profit center in the application (Frontend transaction), then PCA line items will be generated for this account.
For B/S account, if you maintain the default Profit Center with transaction 3KEH/3KEI, the PCA line items will generated for this account also.
Hints, don't maintain default profit center for AR/AP accounts, these accounts to be treated in periodic processing.
First, calculate the distribution/adjust by F.5D, then transfer it by 1KEK. for others account rather than AR/AP, use F.5E
For you case, if this account is P/L account, but you don't maintain profit center in the transaction, you can maintain default profit center as B/S account in 3KEH and 3KEI, then transfer it subsequently by transaction 1KE8.
Good Lucky!
Flex Yang

Profit center charge to balance sheet account

Hi SAP experts,
I would like to seeking for professional advice on is below business process require to use MM module?
Currently my customer is using MB1B (material transfer) to make an posting to balance sheet account (100) and in MB1B screen there was a column to assign profit center (P1).
So the accounting document will be DR 100(g/l) & CR 110(g/l) and charge to P1(profit center)
When customer go to view on KE80, will show the amount transfer charge to cost element 400
When i go to view line item display for g/l 100, i didn't see got any profit center is assign to as i know that balance sheet account not require to charge cost object (customer is not in SAP 5.0)
Now i would like to ask is there any possible, i can post a profit center(P1) to balance sheet account(100) and charge to other cost element (400) without using MB1B? only use manual general ledger accounting posting (FB01)
Note: customer is not in ECC6
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regards,
ng chong chuan

Hi,
I'm not an expert in Cost accounting at all. from my own experience I know, that some of P&L accounts might be relevant to Cost accounting and in this case you need to make appropriate settings in the following node for Treasury: Treasury and Risk Management -> Transaction Manager -> General Settings -> Accounting -> Link to Other Accounting Components -> Allocate Additional Account Assignments to Account Assignment References.
I guess in your case it is only Interest Income account relevant for Cost center, you can check it by clicking on field Reference key in standard report TPM20 and you should be referred to window with several documents, including Cost accounting document. As far as I remember, Cost accounting document might consist of just one line item.
hope this will help you.
Rgds,
Renatas

Profit center at GR IR Clearing Account - MIGO (Account Assignment Q)

Dear all,
We are implementing SAP into a Real estate business client and based on requirements from the Finance we have agreed to have profit centre level balance sheet for each of tower
Hence lets take an example
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If we procure Raw materials specific to each building (account assignment Q) with WBS element of tower one and PC2 defined in account assignment of WBS master data, below is the mentioned entry which I am getting
Inventory A/c Dr. PC2
Clearing A/c Dr. PC1
To GR IR Clearing PC1
To Clearing A/c PC2
Profit center document splitting and zero balancing is active in my scenario
My issue is that GR IR Clearing should not take profit center from MM master, however it should override profit center of WBS element if procurement is done with account assignment Q
Request you to give your thoughts
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Nishu

Hi Kavita,
The purpose of creating profit center for each tower was to identify vendors / customers balance from Finance through profit center reporting
As mentioned in above scenario it does not makes sense to have inventory at tower profit center and GR / IR or vendor at HO Profit center
Any method available with which we can bypass material master profit center through document splitting or account assignment setting in material master.
My MM team is also working on it and they are not keen to have one plant for one profit center. Hence we are looking to find a workaround for the above situation
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Substituion of profit center while posting to internal orders

Dear experts
Can anyone guide me to substitute a different profit center while posting to a real internal order.
I tried substitution rules, user exits, etc. Eventhough the control goes there, substituion is ineffective since profit center assigned to the internal order in its master data is getting replaced again.
Any other work around is possible to achieve this.
Thanks

Find below your clarification for the points
Why we assign cost center while posting to any G/L, even though we have been assign cost center to the cost element it will post the co entry through cost element.: Once you have assigned cost center to cost element in T.code OKB9 or KA01, no need of manually entering the cost center for the respecting primary cost GL while passing enteris.
Please any one make me understand the internal logic and process of how cost element and cost center works.: Whenever you post a cost to primary cost element , you require an object in Controlling , such as cost center to identify the costs. This primary costs are only created when the respective GL exist in the operational chart. Cost center is the location where cost incurs. Thus when you assign the cost to cost center , the cost will be booked against that particular location .

Profit Center Dummy for Vendor advance account - spl gl indicator A

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I have activated the PCA in 4.7, i have posted the vendor advance transaction using f-48. I have given the relevant profit center in the offseeting line item of vendor, i.e bank clearing account. I have maintained this account in 3keh settings too. When i run 1kek to update AR/AP, the vendor related Recon account (i.e spl gl A - assigned account) is updating with dummy profit center.
Is there any notes i need to apply in 4.7 to enusre this picks up the profit center from offsetting line or how to resolve this issue?
regard
Mahesh

HI Rajesh
I checked for the 3keh setting, the offsetting GL is assigned there. How ever, for vendor account i.e recon account, we will not assign in 3keh. So when u run 1kek, the vendor recon gl account is updated with the PC from offsetting line, that is the way 1kek works rite. Now for prepayment through spl gl indicator, i assigned that recon account to 3keh, i ran 1kek, and its updating the Profit Center. That means we need to assign Spl GL assigned recon accounts too to 3keh. Thought let me share this with you.
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Default profit center when posting vendor invoices thru MIRO, FB60 and FB65

Hi,
My requirement is to default profit center at item level while posting vendor invoices using transactions MIRO, FB60 and FB65.
can anyone please provide some inputs on this.
Thanks for your help.
Lucky

Hi,you need to customize doc splitting.
1.You need to clasify all accounts from future document in Document Splitting-Classify G/L Accounts for Document Splitting(e.g. all accounts 2000) 03000-VENDOR.
2.in IMG: Classify Document Types for Document Splitting check for Document type transaction and Variant (e.g. Doc=KR, Trans.=1010, Variant= 0001)
3.In IMG: Activate Document Splitting check assigned method(e.g. 000012)
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For find your method and transaction(e.g. Method=00012, trans.=1010) and double click on Item categories(on left of the top of screen)
There'd be record with category from first step (e.g. Cat.=0300), select one and double click on Base item cat. - there'd be Category 0300 and with check box Automatically split.
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Relation Between Dummy Profit Center and Posting Keys.

Hello Gurus,
It will be a valuable feed back for below mentioned Scenario.
One of our client is on SAP Version 4.7 and New GL is not activated. In COCD one Customer Invoice entry is booked as below.
PK     Account           Amount      Profit Center
01     SURXXX1            100.00         ABCD
50     REVENUE A/c      50.00         ABCD
50     ENT TAX               20.00         ABCD
50     SERVICE TAX       30.00         ABCD
After running t codes 1KEK, F.5D, and KE5T for customer line item system picks same profit center as mentioned in other line items i.e ABCD.
But when we reverse the above document system picks DUMMY Profit center instead of ABCD.
PK     Account           Amount      Profit Center
12     SURXXX1            100.00         DUMMY
40     REVENUE A/c      50.00         ABCD
40     ENT TAX               20.00         ABCD
40     SERVICE TAX       30.00         ABCD
Basically we have checked field status variant for Posting Key 01 and 12 in which Profit Center field is Required and field status for profit center for reconciliation account is also required. This is unusual behavior which we are facing right now.
Regards,
Ajinkya Ahire

Profit Center :
A profit center is a management-oriented organizational unit used for internal controlling purposes. Dividing your company up into profit centers allows you to analyze areas of responsibility and to delegate responsibility to decentralized units, thus treating them as "companies within the company". EC-PCA lets you set up your profit centers according to product (product lines, divisions), geographical areas (regions, offices or production sites) or function (production, sales).
Profit Center Accounting (PCA) allows you to calculate internal measurements of profitability. This internal view of profitability, then, reflects the success of a given profit center at meeting the profitability goal for which it was given responsibility.
Cost Center :
The cost center is an organizational unit in a controlling area. Cost centers can be defined according to several different design approaches. A typical approach could be for an enterprise to define a cost center for each low-level organizational unit that has responsibility for managing costs. As costs are incurred, they are assigned or posted to the appropriate cost center. These costs could include payroll costs, rent and utility costs, or any other costs assignable to a given cost center.
Each cost center is assigned to a category, e.g. Administration cost center, production cost center, etc. Each cost center master record has a field for the name of the person responsible for the cost center.
For detailed information go thru the below article
https://wiki.sdn.sap.com/wiki/display/ERPFI/BasicConceptsof+Controlling
Hope this helps.
Cheers,
Srinath.

Lost of profit center with posting Bill of exchange

Dear all,
When we are posting bill of exchange a new document is created with a default profit center, is this case we losing the offsetting profit center of the original document..
is there any solution to avoid this problem ??
Thanks in advance
MN

If document split active and real time integration between fi and co active, then you can do profit center reposting through KB61.
based on the CO entry system will create FI entry automatically for the adjustment.
e.g.
GL account 1Dr 200(PC-1)
GL account 1Cr 200(PC-2)
Rgds
Murali. N

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Dummy Profit center has already been assigned to customer/vendor reconciliation accounts in 3KEH in PCA. Will that affect F.5D - post balance sheet adjustment process?
Thanks!
Rajesh

Normally in 3KEH is to assign the default profit center, all Balance sheet accounts are assigned to a Dummy Profit Center.
This profit center is only considered if as per the process, Profit center is not populated in the Customer or Vendor, Dummy profit center would be assigned so that Legal Balance sheet and Profit centerwise Balance sheet can always match.
We can always repost from Dummy profit center to the right profit center.

Incorrect posting in asset accounting after legacy asset transfer

I have an issue in Asset accounting.
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My question is:
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Under AS93.
I see the asset ***. acquisition value 205,695.00
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Hi Roma,
The useful life has to be the Total Useful life of the asset.
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<i>Curb
With depreciation beyond the planned useful life, the depreciation percentage rate can be derived, not only from the planned useful life, but also from the actual useful life. This method produces a declining-balance effect instead of a straight-line effect (curb).
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Posting in Asset Accounting in closed fiscal year

Hi
We are in the fiscal year 2009 and my client wants to open the closed fiscal year 2008 in both Asset accounting and Finance.
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Point 2 : Any specific steps to do a full year end in 2008 now to balance Asset Accounting and Financial .And to carry forward balances as to where we are now in period 10.
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Hi,
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Profit center is posted to asset account??

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