Profit Centre on a Material Master

Hi,
I have a question, i hope you can help!
Is it possible to have multiple profit centres on a material master? or do you have to extend the material master to another plant first?
Many thanks
Mark.
Edited by: Frankie Summerbell on Jan 26, 2011 5:32 PM

Is it possible to have multiple profit centres on a material master?
No it is not possible to have multiple Profit center for a single material master, only one can be maintained either of 3 views
A. Costing 1
B. Sales
c. Plant/storage location
or do you have to extend the material master to another plant first?
You can extend Material master to another plant and their you can add new profit center, if the profitability is at Plant level.Which is standard and widely used in business.

Similar Messages

  • Restriction of Profit Centre assignment in Material Master

    Hi folks!!
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    Please help how to do it

    You can try using the Badi
    BADI_MATERIAL_REF - Addition of customer-defined default data for material
    for writting the logic . You can restric both alpha numeric and numeric also here .
    -Hari.

  • 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:
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    (ii) when a cost object (profit center) is being defaulted, why not cost center?
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    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.

  • Profit Center field in Material Master

    Hi all
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    Regards

    Hi,
    The path told in above reply is correct but making profit centre mandatory for only two plants is not possible.
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  • Change the profit center in the material master

    dear All,
    we need to change the profit center but the system is not letting because the is stock.
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    tej yadav wrote:
    Hi, The only solution to change the "PROFIT CENTER"  for you will be to maintain message MM335 in OMT4 as a warning, then change the Profit center & again change it to error.
    Are you really thinking this is the right approach?
    ever thought about how the posting are made in the other modules then? We dont live on an MM island, so a solution  has to cover the requirements of the connected modules as well.
    if you had received stock to a material with profit center A, then value is posted to profit center A.
    if you change the profit center  in material master to B while you have stock, the value of earlier receipts will not move from profit center A to B, they stay at A.
    The next goods issue for this material is made against the profit center B.
    this results in having a postive value at profit center A (which will never go away) and having a negative value at profit center B (because you had never received to profit center B what you just issued)
    Because of this you should not change the message settings.
    Florian LINTNER wrote:
    Hi!
    >
    > post the goods issue in the prior period.
    > Change the profit center.
    > And post a new goods entry with the date of today..
    >
    > regards
    > flo
    you cannot issue anything in the prior period if everything is already issued in the current period.
    One should obtain the quantityof previous period in material master accounting view.
    Finally you have to have zero stock in current and previous period before changing profit center.
    How you approach this is based on the fact if the current period stock is bigger or smaller than the previous period stock.
    if current period stock is bigger, then issue previous period stock with previous peiod date, and issue remaining stock in current period.
    if current period stock is smaller than previous period stock, then you have to write on the delta in the current period, and subsequent issue the total stock in the previous period.
    seesen_rs wrote:
    Your approach is right. when we had this issue we solved through created dummy material and issue it to dummy material, change the profit center and receive it back..
    >
    > Both options dont affect the accounting.
    Goods issue to cost center or goods movement 309 to a dummy material will both affect accounting and create accounting documents.
    of course, if everything works well then you will get  accounting documents with opposite value after you have changed the profit center and you write on the quantity again.

  • 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 Maintaining in Material Master

    Dear Friends,
    One of my client has Posted a material(without maintaining Profit center in Materila master) to wrong profitcenter.
    Now he is trying to maintain the correct profit center in Material master record for that material.
    But system not allowing this as there is stock for that material in warehouse.
    My client Requirement is,
    He want to maintain the correct Profit center in Master Data without reversing the whole stock.
    Can u pls tel me is it possible or not.
    if it possible means kindly explain the steps.
    Rgds,
    Sankar D

    If your client is very much strict enough to change the profit center in Material master only then you also tell him strictly that it is not possible & thats why the system is giving the error message.
    Regards,
    Indranil

  • Profit center change is  material master issue in EHP7

    Hi,
    we are facing issue in materail master  profit center  change .recently upgared with ehp7 after this upgarde its not allowing to change in materail master.
    i have alternative solution for this is t code OMT4 i can change message type E to W .
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    Hi Vinod,
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  • Proper Profit center required for Material Master in Costing1

    Dear All
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    the Y_pctr the system give the error msg invalid Pctr.
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    Avijit

    Profit center is linked to Plant. There can be only one to one relationship between a plant and profit center. So if you want to transact on a material on 2 different profit centers, then you need to two plants and you have create that material in these two plants.

  • Profit center valuation  in material master

    Does anyone know the table where the profit center valuation standard is stored. In MBEW I see the legal valuation standard but not the profit center valuation standard.

    I can give you some information but not everything.  I have gone through the deployment of material ledger using 3 valuations, but not the ones you are using.  We used Local, Group and Group at Group.  All 3 are at actual costing.  What this means is that the local currency is the currency in the country where the plant exists.  The group valuation is a straight conversion to US dollars from the local currency based on the currency conversion tables M and P rates.  Note that both of these first two currencies can include intercompany profit if reflected on the transferring sales order between companies.  The Group at Group is the US dollar conversion without the intercompany profit.  We find this works for our business.
    The other thing about material ledger is that you need to have a standard cost estimate so that material ledger can keep track of the cos component structure.  The way it works is as follows:
    Say the standard estimate shows labor=$100, materials=$200 and overhead=$300 for a total cost of $600.  All transactions in the month using this material use the $600 standard.  Now, when material ledger is run at month end, the PUP (periodc unit price) is calculated and let us assume the PUP values are labor=$150, materials=$250, overhead=$350 for a total PUP of $750.  Material ledger already has tables with the details of the standard components against every transaction.  Now it will apply the remaining adjustments totalling $150 to the proper cost components for COPA purposes.  This is pushed to COPA using transaction KE27.  Think of it like this...Actual cost is equal to standard ($600) plus/minus variances ($150). 
    Therefore, you always should have a standard cost estimate when using material ledger.  At least that is my usage and understanding.  I hope I provided useful information for you in some way.
    David

  • During F110  run-How to pick profit centre from the Pur.Invoice line item ?

    Could anyone please help me with a solution to this problem.
    Purchase invoice line items have got profit centre recorded from Material master.
    While doing the auto payment run F110, for foreign currency invoices, the exchange rate diff
    is posted to a - realised exch rate diff gl a/c.
    But there is no cost object attached.
    Business wants the system to pick the profit centre from the purchase invoice line item
    and put it in the line item record of the exch rate diff account.
    Can I do it using OKB9 ? Could someone please explain how to do it.
    Thanks

    Hi,
    With standard SAP this is not possible.may be you have to develop some custom program.
    with my experiance,we always post to defualt cost center.
    hope this helps you.
    Thanks,
    Rau

  • Subsitution rule not reflecting (profit centre)

    Hi
    I have to change the profit centre of accounting document at transaction MB03.
    I have to choose the Profit Centre from the Material Master assigned for the respective Plant of the Material. The profit centre is chosen from the WBS now.
    I created a new step, and applied the necessary substitution rule and logic. The changes are reflected through the entire flow of the program while debugging it, but not getting reflected in the output at MB03.
    Prior to my substitution, the following substitution were applied, and were working fine.
    1. Substitute the profit center in the settlement document with the profit center from the WBS element
    2. Pick profit center from material master instead of sales order.
    Now, my substitution is not working. Am I missing some assignment ?
    Thanks.
    Regards,
    Tapan

    Hi
    I think you have written two substitution on one filed
    one is from the WBS element and another is from Material
    So one rule is overwriting now. i think it is taking value from Material but it is overwriting with past value ie from WBS
    Ask you abaper, after WBS rule your new rule should be trigger
    So that new rule will overwrite the old rule
    Advise : Dont keep contra entries like this, keep some if conditions
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  • Reversing the liability for profit centre

    Hi Experts,
    During posting of MIRO for the freight by plant 1000 , system is reversing the liability of last line item in profit center 100000 itself instead of 1100000.
    Regards,
    Anish

    Hi,
    Check whether freignt gl is defualted to profit centre in faglkeh and check profit centre assignment in material master and if any cost centre or internal order is using in the po.

  • Urgent:Profit centre differing from SO to material master

    Hi SAP Gurus
    May i know where from Profit centre gets populated in the SO(Line item level-A/c assignment Tab-Profit centre field).
    To my understanding it gets populated from material master.
    But i have a sales order wherein the PC has PC$$$$ but when i checked the material master data ,i could find PC##### in the sales general plant view.
    Why it is differing?
    What i need to check further?
    Regards
    Sush
    Edited by: Sushma Gopichetty Laxman rao on Oct 8, 2008 3:49 PM

    Hello Sushma,
    May i know where from Profit centre gets populated in the
    SO(Line item level-A/c assignment Tab-Profit centre field).
    To my understanding it gets populated from material master.
    But i have a sales order wherein the PC has PC$$$$ but when
    i checked the material master data ,i could find PC##### in the sales general plant view.
    Why it is differing?
    What i need to check further?
    As you have cited that the profit Center set in Material Master record is different to the value available at Sales Order, please check in following points:-
    1:- Check the Change History log of the particular Sales Order.
    2:- Check whether there are any User exit being used which is altering the value of Profit Center of the Sales Order with the help of Technical consultant.
    Kindly share you observation based upon these above pointers.
    Regards,
    Sarthak

  • Raw material profit centre document is not generated

    Hi All
    When i maintain profit centre in raw material and do GR/IR, only accounting doc is generated. The profit centre mentioned in material is reflected against both accounts in the entry. (rm inventory a/c and GR/IR clearing a/c)
    When I go and see report of that particular profit centre I dont see any posting. Why is it so?
    Can u help me out?
    Regards
    Rakesh

    I am certain that a profit center document gets created for materials that have moving average price.
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    If you see this profit center doc in this pop-up, then you can be sure that it is posted to a profit center. go into this document to see to which profit center the posting was made.

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