Profit Centers & Distribution Rules

hi experts,
I have created a distribution rule which consists of 5 profit centers as following:
Sales1 20%
Sales2 20%
Sales3 20%
Sales4 20%
Sales5 20%
I posted a JE with amount of 2000 to one of my expense accounts with distribution rule tagged in row level.
Run:
P&L statement with profit center Sales1 is selected (expected result: expense account 400)
Result:
Empty~NOTHING. (I believe 400 should be showing in my P&L right?)
Please advice me on above statement.

Hi Lim,
you need to define the distribution rule (remember if it is direct charge or indirect charge), than You can post a document or a JE with a G/L account of expenses or profit and you need to specify the Dsitribution Rule code into the JE row with the G/L Account.
When you run the Profit Center Report and you can see the amount's distributed by Profit Center based on the rule you have defined.
With the Profit & Loss Statement, you can't run it with the Profit Center into Expanded Selection Criteria but you can run only with the Distribution Rule (in fact into the JE you have inserted the rule non the profit center !! ).
This is a limitation and a system definiton of Cost Accounting into Business One.
Regards,
Massimo Sala - Italy LPE

Similar Messages

Profit Center & Distribution Rule - figures not shown in P&L

hi experts,
I have created a distribution rule which consists of 5 profit centers as following:
Sales1 20%
Sales2 20%
Sales3 20%
Sales4 20%
Sales5 20%
I posted a JE with amount of 2000 to one of my expense accounts with distribution rule tagged in row level.
Run:
P&L statement with profit center Sales1 is selected (expected result: expense account 400)
Result:
Empty~NOTHING. (I believe 400 should be showing in my P&L right?)
Please advice on the statement above and PLEASE do not ask me to read previous threads as I had gone through them.

Hi,
The note 843508 explains the behaviour.
Hope it helps.
Jesper

How to add the Profit Center (Distribution Rule) at AR Invoice

Hi All,
              At SAP 2007 B PL10, Is it possible to assign the Profit Center at AR Invoice Document Line via DI API, because when I changed the Item's warehouse the profit center value is disappeared.
             Please give me any suggestion.
Thanks,
Lei

Hi,
               When adding new invoice document, can I call the document & document line object? At SAP 2007B PL10, the profit center field is combined with product group, product family, market, department and service fields
               Example : At profit center field will show (G&A; Audio; SG) when Default values of product group is "G&A" , product family is "Audio", market is "SG"
Thanks,
Lei

Profit Centres and Distribution Rules

Hi, Is there someone who can help me about a problem with cost accounting?
I've set profit centres, distribution rules (created and linked to profit centres), I've linked accounts to distribution rules so the "profit centre report" shows all the expenses related to each PC/DR. I also can see the table with all the parameters I set. My question is: how can I check (or is it possible to check) if a specific cost (account) is more than the limit I set in the distribution rules? In other terms: If I set 10.000 EUR on DR called "training expenses" with account linked "040001" and then I charge this account with 20.000 EUR; is it possible to have a notification or something in the "profit centre report" or in the "table of PC and DR" who tells: "ehy man, you spent too much!!!" (or at least the possibility to have DR values in the PC report?).
Thanks a lot in advance and sorry about the length of my post.

No but you can use the Budget features of B1 to do something similar. If you turn on Budgeting from the System Initialization>General Settings>Budget You can warn on devations from Budget or block devations from budget, on PO, GRPO and JEs
dan

Cost Centers and distribution rules

I need to allocate costs to profit centers and would like to have the costs be allocated first to the department cost center then distributed to product profit center by %.
Example: An invoice is first allocated to the sales department, then the distribution rule will allocate the cost between 4 product lines (33 % chemical A, 33 % chemical b, 17 % chemical c and 17 % chemical d).
How would I setup the profit centers, cost centers and distribution rule to accomplish the above task.
Thank you,
Wayne

Hi Fred,
I assume you using 8.81?
1. Administration - General Settings - Cost Accounting : Tick "Use Multidimensions" option
2. Financial - Cost Accounting - Dimensions : Tick "Dimension 1" and "Dimension 2".
Give proper description to each dimension, in your case maybe "Department" to Dimension 1 and "Product" to Dimension 2
3. Financial - Cost Accounting - Cost Centers : Create your intended cost centre, "Sales" cost centre with dimension "Department", "Chemical A" to "Chemical D" with dimension "Product"
4. Financial - Cost Accounting - Distribution Rules :
As for your intention to allocate the invoice to Sales Department, since you want to allocate it 100% to Sales Department, you don't need to create a distribution rules, since B1 will automatically create a distribution rule with 100% allocation for each cost centre you created.
As for your production cost allocation, create a distribution rule with your code "DR-P01" as an example, choose dimension "Product", set the Total with "100". In the detail section, choose each cost centre (Chemical A to D), enter respective value and click "Add" button.

Distribution Rule in Incoming Payment of Invoice

Hello Experts,
I'm running SAP B1 8.81 PL05 and I have the following problem.
I issue an A/R Invoice + Payment and I have in the "Payment Means" a discount. The final result is an issue of two different journal entries - one for the invoice and another for the payment discount.
The problem is that I want to have a Distribution Rule associated with the Incoming Payment discount and I can't find a way to associate it - the solution of associating a distribution rule to the account is not possible because the Distribution Rule changes according to the sales employee.
Help would be very appreciated.

Hi Thomas,
From the SAP help, you can know what is the use of this rule.
Defining Distribution Rules
Use
For cost accounting, this setting is mandatory.
Use this procedure to define distribution rules to distribute amounts between different profit centers.
Prerequisites
You have defined profit centers.
Note: If you delete a distribution rule for one profit center (100%) this does not automatically delete the profit center.
You can also look up this key word to find more info. For examle, you can find SAP note 1236348 to see if it fits you.
Thanks,
Gordon

Distribution rules in Incoming payment and Outgoing payment

Hi,
Did anyone know the purpose of having distribution rules in all the outstanding invoices in both Incoming and Outgoing payment.
I try to attach the distribution rules to specific invoice and post incoming payment but it did not appear in the bank journal entry row.
I also try to attach profit center in AR Invoice row but after posting and do Incoming payment, the distribution rules also never show for that particular invoice.
Really wonder how the distribution rule works?
Regards
Thomas

Hi Thomas,
From the SAP help, you can know what is the use of this rule.
Defining Distribution Rules
Use
For cost accounting, this setting is mandatory.
Use this procedure to define distribution rules to distribute amounts between different profit centers.
Prerequisites
You have defined profit centers.
Note: If you delete a distribution rule for one profit center (100%) this does not automatically delete the profit center.
You can also look up this key word to find more info. For examle, you can find SAP note 1236348 to see if it fits you.
Thanks,
Gordon

List of Profit Centers

Is it possible to remove profit centers from the "List of Distribution Rules" that appears, when using the Tab key in the profit center field on "Service type" sales orders, invoices etc.
We are trying to avoid profit centers being chosen that are no longer valid (SBO 2005)

hi,
By applying authorization to form settings u can restrict selection of profit centre,
Remove visible tick of ProfitCode/OcrCode in Document Settings and applying authorization
to form settings as General ---> Document Settings ---> No Authorization.
U can restrict unwanted profit codes by applying formatted search using query
in field profitCode/OcrCode.
SELECT T0.PrcCode, T0.PrcName FROM OPRC T0 WHERE T0.PrcCode IN ('Plant-1','Plant-4')
Hope it helps.

How to set the profit centers

Hello experts
i want to know about profit centers i have created a profit center also defined the distribution rule for the profit center
i want to know how the transaction takes place according to profit center and its distribution rule do i have to define the gl account for a profit center pls explain with example.....

HI,
SAP Business One enables you to define profit centers so that you can monitor and regulate the costs of your business processes effectively. The profit center reports give you important information about the costs and revenues that have arisen, sorted by area and department.
First of all, you define the various cost centers or departments in your company as profit centers. You then assign revenue and expense accounts to the profit centers so that any data relevant to a profit center can be updated automatically for all transactions entered in the system. Costs are allocated to the profit centers using information that you define in a distribution rule. This means that any costs incurred will be allocated to the profit centers on the basis of a specific key. If you decide that the way in which costs are allocated no longer reflects the way in which your company works, you simply change the distribution rule as required. You can use the Profit Center Report to generate a profit and loss statement for any profit center and period.
In addition to conventional financial accounting (where the values of all business transactions are recorded), many companies also perform cost accounting. The aim of cost accounting is to determine how profitable a companyu2019s business activities are.
Hope this helps,
Son.

Object Code for distribution Rules

Hi all,
what is the object code for the distribution rules (in Cost Accounting menu).
Urgent...
Thanks
Sandeep

Hi Deshpande,
If you use the DI API help file and search for the OOCR table you find out that profit centers are not exposed yet in the DI API.
That means that no object is available for distribution rules.
Regards Chris

Usage of Cost Centers, Profit Centers and Internal Orders

Hello everyone,
i have perhaps for some of you a simple question but it bothers me alot.
Imagine we are using Cost centers and Internal Orders. For them we create statistical key figures using transaction KB31N.
Now we are installing SAP BI and want to create a report which would be generated acording to cost centers but with statistical key figures.
The question would be how to make a connection between cost centers orders and those stat.key.figs?
In our case the economists say that we are using this kind of scenario:
Dist.chanel ->
Sender: Cost center, Cost element
Receiver: Int.Order
and Stat key fig.
This is the only place where we have a connection between thos objects. Is there other way how to connect them. perhaps using profit centers?
If somebody didnt understand it, maybe ill try to explain it a bit better
Reagards
Laurynas Prikockis

Hi Laurynas,
Pls try to understand the concept as explained hereunder...
Cost Element:
Primary Cost Element : Replication of GL to bring costs into CO module when they are posted in FI
                                   module
Secondary Cost Elements: Carriers of costs between two Cost Objects (when we want to transfer the
                                        cost from Cost Centers to Internal Orders, vice versa and more, we create
                                        Secondary Cost Elements to carry the costs and transfer them to the
                                        reciever objects from sender objects)
Cost Center: It is a Cost Object, maintained on long-term basis, where we can capture the costs (Ex:
                    Marketing Cost Center)
Internal Order: It is also a Cost Object, maintained on shor-term basis, where we can capture the costs
                     (Ex: Internal Order for Special Marketing Campaign). Ultimately, whatever the costs
                      posted to this Internal Order, will get settled to Marketing Cost Center.
Staitistical Key Figure: It is used as a basis for allocation of certain expenses (Simple example would
                                  be, Total rent paid for office is $100000 per month. This cost has to go to
                                  different Cost Centers like Finance and Accounts, Marketing, Purchase Dept
                                  etc on the basis of "Area Occupied". So, We will define "Area Occupied" as a
                                  Statistical Key Figure in our system.
                                 Now, when the Rent amount is posted in FI, it wil reach a Virtual Cost Center
                                 (An "Allocation Cost Center" with name "Rent" to be created under your
                                 Controlling Area) "Rent". From there, it has to reach the other Cost Centers (lie
                                 F&A etc as explained above) on the basis of Area Occupied (SKF Created
                                 for "area occupied")
For this, you need enter the Area Occupied values (Ex:Sq Ft) in KB31N and you need to create an Allocation Cycle (Distribution / Assessment) where in you will select "Area Occupied" (SKF) as your Receiver Tracing Factor.
I hope I am clear, don't hesitate to revert back for more explanation...
Srikanth Munnaluri
Edited by: Srikanth Munnaluri on Mar 3, 2009 7:26 PM

Repostings of data in profit centers

Hi!
any one can tell me can we report revenues between profit centers as we will done in the case of Cost Centers ( KB11N,KB61)?
Not through distribution and assessment.
I have configured some revenue elements to internal order in OKB9 and in internal order profit center is assigned.
As we forgotten to insert profit center in internal orders, all revenues posted to Dummy profit center.
Now we want to repost from dummy profit center to actual profit center.
regs,
ramesh

Hi,
You can always repost the values from dummy profit center to correct profit center.
Please try the relevent option.
Let me know if u have questions
Best Regards
Surya

Profit centers with COPA

Hi,
I have a few doubts about the need of EC-PCA in a project where COPA is being implemented.
The client would like to get info about the profitabilyty of organisation units as well as products, groups of products, clients and so on.
However he is unable to assign materials to only one profit center (which would be production departaments in this case). Different Finished goods, semi finished goods, wares and services can be assigned to more than one production departament. (a material index cannot be assigned to only one PC in this case).
What would u advise me? Should I use EC-PCA but change the PC hierarchy or COPA is enough for these purposes?
Best wishes,
Karol
Message was edited by:
Karol W

Dear Karol,
Here the some infirmation is about Profit center related and cost center.hope this infirmation will helps you
You would need check the design of PCA and what the business wants to use PCA for. For example do you want to produce P&L Statements and or Balance Sheets by Profit centers etc.
In terms of the cost center assignment to profit centers, the main use of this is to ensure that all costs posted to a cost center will be simultaneously posted to the assigned Profit center. Now in PCA configuration you have to create a "Dummy Profit Center", the consequence of this is that if a profit center cannot be derived (for example if you do not maintain a profit center in the material master) or from the cost center or a profit center is not entered in a posting, the entry will be automatically posted to the "Dummy" profit center.
In terms of design, we are faced, in certain circumstances when we design PCA along the product lines for example, what to do with certain postings such as bank charges or admin costs, which are not directly attributable to the product line.
One way to treat these, is to Create a "Corporate" or "ADMIN" Profit center and assign all the service cost centers to this Profit center and at month end re-allocate to the Product Line Profit center via Distribution or Assessment for example based on sales volume or fixed amounts or percetntages or SKF's to make the reporting more meaningful
create additional profit centers and assign all admn, IT other than production cost centers to either Common, Admin or Corporate profit centers. Suggest you create following non product cost centers
1) Corporate
2) Admin
3) Product Common
Assign profit centers to cost centers logically
In MM master records assign product related profit centers to RM and FG / SFG material types. This takes care from material accounting point of view in PCA
For transfer of costs collected in Non Product related profit centers proceed as follows
1) Create PCA assessment Cycles
2) At month end allocate these expenses and check cost in non product profit centers is zero.
3) Decide on the allocation basis
4) This ensures that you have PCA wise all P&L items accounted.
5) You can then design PCA wise report painter reports for PCA wise P&L
Hope the above will help you
Prem.

Default profit centers Plant wise for Balance Sheet tax relevant Items.

Dear All,
We have an issue in profit center acccounting.
In balance sheet accounts, Vat input tax payable, TDS payable, Cenvat clearing etc are picking profit center from 3KEH. When Exicse is getting captured cenvat clearing account having the profit center but while doing the MIRO cenvat clearing do not have profit center & plant.
Why it is so?
Basically we are doing the following steps.
1. Purchase order creation ME21N.
2.Goods received via migo
3. invoice receipt via miro.
At the time of miro posting, system creates automatically accounting document, with default profit center maintained in 3KEH, which are assigned to Vat input tax payable, TDS payable, other tax accounts. For GR/IR clearing account right profit center is picking without any mistake, while doing MIGO & MIRO.
We need to extract the Balance Sheet profit center wise at plant level.
Derivation rule is created for this balance sheet account along with Valuation area condition to post to correct profit center maintained under Tcode: 3KEI . But system is taking only default profit center (3KEH).
I have checked configuration and the following areas like Material master costing view, tax code areas, and account group but did not find any mistake.
Please advice and Guide us, how to get correct profit center at plant level for these balance sheet accounts instead of default. (I want to make default profit centers plant wise).
It is urgent.
Thanks,
Shailendra Gupta.

Hi!
You can use following report :
S_ALR_87013336 (Report for Balance sheet at Profit Center and Group Level).
Hope this will help.
Thanks & Regards,
Taral Patel

Is it possible multiple line items debit & single line item credit and different cost centers and different profit centers in fbcj

Hi all ,
I have a requirement to Post Cash Journal Document using FBCJ tcode.
Is it possible multiple line items debit & single line item credit and different cost centers and different profit centers
for exp:
pk   GL a/c   description       amount   cost center profit center
40 400101 telephone exp   500        1403            P 1000
40 400101 telephone exp    100       1404            P 2000
50 200100 cash in hand      600-
   This is My requirement is it possible in fbcj
    Please suggest me.ASAP.
Regards
   Naresh.

Hi,
This you can do it in two ways:
1. Make three header under top level....one Product A, 2nd Product B ( as Billing element) and third as Common expense ( only cost). Now 1st & 2 nd WBS, you have to have sales order linking with individual lint item, for third you will accumulate all the common expense till the period end then make a reposting of the same in desired proportion to both products WBS hierarchy
(This is if you want to have a track on the common expense as well.......like planning, budgeting & control)
After this reposting, run RA for individual billing element and hence you will all the complement detailing and control over Revenue and expense with respect to Product A and Product B individually.
2. If you don't want to maintain that kind of detailing the common expense and keep track of it through project, then have cost centers accordingly and make an assesment/ distribution with respect to expenses accumulated at those cost centers for the period to the respective WBS under each product. Then execute the period end processes for the project.
Or
You can try with have two more line items in the costing sheet as an overhead against common expenses with respect each product.
I hope this should help you.
Regards
Avisek Bhardwaj

Profit Centers & Distribution Rules

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