Profit centre & Business Area in SD

hello
I have some doubts.
I want to know what is sifnificance of Profit centre in SD. where it is used?
And my second question is do we maintain business area only for material?Is it used only to determine G/L accounts onl?.
So please update my knowledge.
thanks
Debu

HI
The profit center valuation view shows you the cost of goods manufactured from the profit center viewpoint and valuation according to transfer price conditions
Business areas are primarily used to facilitate external segment reporting across company codes, covering the company's main areas of operation (product lines, branches).
You can assign all balance sheet items, such as fixed assets, receivables, payables, and material stock, as well as the entire P&L statement directly to business areas. You can only assign banks, equity, and taxes manually to business areas indirectly. For this reason, it is not possible to create the legally-required financial statements and tax reports at business area level. Financial statements at business area level are therefore only suitable for internal reporting.
Raghu

Similar Messages

Profit center/Business areas

Hi,
can we track all the fucntinality of business area using profit center acc. instead if we decide not to use business areaa at all and not activate compna code ofr bus.area fi. statements.
are there some eg pca reports whcih can list p&l and b/s reports as it would show for business areas.
please let me know

Yes, it possible to generate B/S in PCA and not to use BA. You must take care of following config-
3KEH- All B/s gl accounts which are not recon a/c or inventory/wip accounts must be customized in this transaction code. PCA P&L always reconciles with FI.
To transfer receivables, payables, asset, inventory/wip to PCA, there are programs provided by SAP which are periodic. However, there is option to maintain asset & inventory accounts in 3KEH and can be posted online in realtime. Receivables / payables are always posted periodically in PCA. (t codes 1KEj, 1KEi,1KE?,..)
If you are using ECC 5.0 /6.0, it's better to use segments.
Hope this information helps.
Regards,

Profit center & business area

Hi,
Why we are now going for profit center than the earlier used business area. Is there any list of better functionlaity in this regard.
Thanks

Hi,
Business areas are defined at client level and are avialble to pick up during posting w/o any mapping of Company code on to Business area.There is no guarentee that all the transaction have been posted in full - example material transfer from plant to plant where each is representing diff.BA- as for as Busines area is concerned, Tax entries from tax codes etc.
But in the case of Profit centers it could be mappend in a tigh way and any entry not mapped to profit center is routed to dumm - which is manadatory in PCA- so that it could be identified an handled properly.
These are the distinct features that enable PCA better compared to BA.
Regards
K Khatri

Validation for Profit Center & Business Area

Experts,
If I want to add new validation rule for another profit center and business area which is not in the current rule defined.
Prerequisit will remain same.
Check : is as below for other profit center and business area. Message will also remain same which is already defined.
CHECK:
OR
( BSEG-PRCTR >= 'VS0001' AND BSEG-PRCTR <= 'VSZZZZ'
AND
BSEG-GSBER = 'SPFN' )
OR
( BSEG-PRCTR = 'EBT021' AND BSEG-GSBER = 'SPFN' )
OR
Requirement: we want to add new profit center EBT022 and Business area SPFN.
Please explain how can I achieve this? Do I need to add one more line as below in between the whole CHECK Rule specified?
OR
( BSEG-PRCTR = 'EBT022' AND BSEG-GSBER = 'SPFN' )
- Nilesh

Gaurav,
Before maintaining this validation rule, when we try to post transaction. We have tried with other combination of Business area and desired business area. Message appears "Profit Center not consistant with Business Area".
What is the logic behind this? This is just for my understanding..
If we create rule for new Profit Center for desired Business Area then possibly system will not throw error message.
Please correct me if I am wrong?
- Nilesh

Goods Receipt entry going to dummy profit centre

hello experts,
Goods Receipt entry is going to dummy profit centre, dont know how and why ?
I have checked the PO, Material Master, WBS etc. where the desired profit centres are mentioned.
We have a relation ship of plant=profit centre = business area in our structure.
Goods Receipt entry should go desired profit centres only AND NOT TO DUMMY PROFIT CENT..
Pl advise.
Thnks
Pravin / Vinod

Hope you have checked substituion at OKC9.
Make sure that the account assignment is WBS element only in PO. If not then, please chek whether profit center is assigned to that cost object.
Easily you can monitor profit center assignments at 1KE4.
Regards,
Ravi

PS Issue Business Area and Profit Center - differing in WBS to Network

Hi
my team has used COPY NETWORK option and copied a network under WBS in Project Builder (CJ20N), It has observed that org elements of WBS and Network, Acticity are differing.
Now there are thounds of records of the same, (Org Elements differing in WBS to Network).
Can you sugest me is there any option to resolve the issue and settlement can be made correctly
regards
sri

Hi
Once actual postings are made on object (like network or WBS element) you cannot change CO elements (profit center, business area). Those will be disabled. However if no postings happen then you can edit those data.
If postings already happened and you are not able to change the fields, you can create new network and activity under same WBS element and can transfer the cost (line item wise) through FI (I belive F-02 or FB50 transactions). Please check with your FI counter part once.

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.

Intercompany elimination at legal entity and profit centre level

All,
I have a question regarding intercompany elimination. As far as I understand, BPC can only hold one Interco dimension per application. If you want to perform an intercompany elimination for two dimensions which do not roll up into each other, two separate applications are needed. Please see example below to clarify:
Data is reported the following way:
Legal entity Profit Centre Account Interco Value
The problem is that the profit centre hierarchy does not roll up into the legal entity hierarchy mainly because there are profit centres set up as legal entities. Consequently, the legal entity hierarchy and the profit centre hierarchy are two independent hierarchies.
The business requirement is to have an intercompany elimination at profit centre and legal entity level at the same time (hence requiring two Intercos at the same time). This is needed as some of the profit centres are set up as legal entities.
Can someone advise me as to how to resolve this issue? Did anyone come across a similar problem?
Please let me know if you require any further clarifications.
Marc

Hi
Try to use 2 application for the interco elimination
for the 1st appls ur entity will be the entity dimension and use intco as intco dimension
for the 2nd one use the profit center as entity and build a new intco
As per interco logic this is using the Intco property in the Entity dimension and Entity property in intco dimension
it is very impossible to do this in one application
Thanks
CSD

Error in profit centre document

Hi All,
We have created a billing doc. corresponding accounting document, profit centre document are getting generated.
But if we look at the profit centre doc no values are found and it is a blank completely.
Can any explain us what is the cause resulting profit centre document generation with out any value in it?
Babs.

Hi,
I have received the following error message.
Balancing field "Profit Center" in line item 001 not filled
Message no. GLT2201
Diagnosis
The field Profit Center marked as balancing is not filled with any value in line item 001, even after document splitting.
System Response
The document cannot be posted.
Procedure
First check your entries.
Additional causes could be:
No value can be derived for this field from the current document data.
You have entered a document type that is not designed for this business purpose.
Procedure for System Administration
Customizing

Profit Centre Document issue at the time of Post Goods Issue on SD.

Dear Experts,
While SD person is posting Post Goods Issue, System is generating Profit Centre Document along with other documents. We are facing an issue with Profit Centre document here and the issue is:
Some Profit Centre Documents are populating Delivery Order Number on respective field while some are not. Ideally all profit centre line items should show Delivery Order Numbers.
Please guide any solution to resolve this issue, its urgent.
Thanks in Advance.
Regards,
Zain Bashir

Hi Zain
This is a tricky issue
Are you saying that the PCA document has the Delivery Number (VL01N) updated in some cases and not updated in some cases?
The Delivery Number is updated in PCA document when you create Delivery from VL01N and do PGI from VL02N
But, if you do PGI from VL01N itself, then the delivery number is not updated in the PCA document
SAP recommends to post PGI from VL02N
Br. Ajay M

Business Area field should not get translate while doing allocations in co

Dear All,
In ecc 6.0 when we will be allocating expenses through assessment and Distribution the system credits sender cost center and debits receiver cost center,the same will be applicable for Business Area also.
But my client is having plant =business area for which they are making financial statements business area wise.
The client wants its business area not to get affected by above allocations ,Is there any method of restricting costs to remain in same business area and not getting translated to another business area.
Example :                    cost center           profit center           business area
expenses                      1011                   1001                     101
allocation from cctr to cctr 1012 which is having pctr 1002 and business area 102
expenses                      1012                   1002                       102
So my requirement is the system should not update business area 102
Thanks and regards
vijay

Hi Vijay,
Profit Center is derived basing on Assignments. If you have assigned a Profit Center in the Cost Center Master
Data, obviously for whatever the postings that take place in that Cost Center, will be posted to Profit Center also
(Statistical).
In your case, Cost Center 1011 and 1012 have been assigned to different Profit Centers 1001 and 1002. So,
conceptually what the system is doing is correct.
You want to restrict the postings to happen to Business Areas. I suggest you, this is not problem of
stopping/restricting the transaction postings but You have to restructre your Cost Centers and Profit Centers.
It's rather a Business Process / Structure change required than technical requirement in the system by restricting
the postings.
Pls revert back for further discussion...
Srikanth Munnaluri

Issue : Balancing field "Business area" in line item 001 not filled

Hi Gurus...
I have facing an issue : Balancing field "Business area" in line item 001 not filled
I have maintained material management small difference account (DIF), to post the small differences... between PO value and (vendor) Invoice Value....
At the time of posting invoice system giving this error... even after maintaining the business area and profit center in MIRO transaction...
Here we have activated Document splitting in FI, also Business Area & Profit Center are mandatory fields..
Pls give some inputs in fixing this issue..
Thanks in advance....
Regards
Shashidhar..

Hi
There could be multiple reasons for this. Pls check on:
1. For the Expense Account assigned in DIF, have u made the assignment for deriving Profit Center & Business Area in T Code OKB9
2. Ask your FI Consultant to check the Splitting Characteristics for the MIGO. Check the Splitting Characteristics assigned to the Accounting Document Type assigned to T Code MIGO. Also check if all the GL Accounts have been assigned a splitting characteritics. The path is:
IMG> Financial Accounting(New)>General Ledger Accounting (New)>Business Transactions>Document Splitting
3. Do you maintain profit center as a default in material Master? If yes, check if the same has been assigned in the view extended for the plant concerned?
Pls check the settings. If any doubt, revert back.
Thanks & Best Regards
Sanil K Bhandari

Business Area for auto generated line items

Dear All,
If business area is XXXX then business place/section code is BXXXX.
If co code XXXX, then profit center = business area.
Both the above substitutions exist in our production system. I have set Business
Area & profit center fields mandatory for certain postings keys.This doesnt create any problem for normal postings. But when a transaction generate auto postings like service tax seperate line item, TDS line items, price difference etc SAP throws error for Business area or profit center. Pls guide with a solution to this issue.
Your inputs are valuable.
Regards
Komal
Edited by: Komal on Apr 3, 2009 6:04 AM

Experts, pls contribute your inputs.
Regds
Komal

VBRP does't have the PROFIT CENTRE FIELD

Hi Gurus,
Hi Gurus
I am fetching the billing(commision, credit notes ) from vbrp, based on profit centre, controlling area and date.
but some where in vbrp profit centre field having no value.
Actually this report is FICO but commission ,credit notes and cover price(MEDIA MODULE) available in SD ONLY.
if any body knows give the sollution.
this is very urgent.
Regards,
Shashikumar.G

Hi ,
It is at the item level under Account Assignment tab of sales order transaction .VBAP-PCTRF and also the same is copied in VBRP-PRCTR .
and obtained from COBL.
Please reward if useful.

Balancing Field "Business Area" in line item 001 not filled.

Dear Guru,
I am facing this problem while doing MIGO.
Kindly suggest.
Thanks is advance..
Raj

There could be multiple reasons for this. Pls check on:
1. For the Expense Account assigned in DIF, have u made the assignment for deriving Profit Center & Business Area in T Code OKB9
2. Ask your FI Consultant to check the Splitting Characteristics for the MIGO. Check the Splitting Characteristics assigned to the Accounting Document Type assigned to T Code MIGO. Also check if all the GL Accounts have been assigned a splitting characteritics. The path is:
IMG> Financial Accounting(New)>General Ledger Accounting (New)>Business Transactions>Document Splitting
3. Do you maintain profit center as a default in material Master? If yes, check if the same has been assigned in the view extended for the plant concerned?
4. Last but not the least check Input Business Area field in the Line Item
Edited by: m_n_novice on Aug 31, 2009 4:47 PM

Profit centre & Business Area in SD

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