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

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Profit center and Distrbution Rule

Is there any difference between profit center and distribution rule, or they are the same thing?
Thanks

Hi,
This question belongs to main forum. These two concepts are different. Distribution Rule is only a rule to distribute costs or revenues. You may find the online help as follows:
A profit center is a company unit or division that performs a specific business function.
For costs and revenues that can be assigned directly to a profit center, you define a direct distribution rule. When you create a profit center, SAP Business One automatically defines a distribution rule with the same name and code as the profit center. This distribution rule cannot be changed. The default values of the rule are: direct debit, and factor 100 for a total value of 100.
When it is not possible to determine the profit center to which to assign the costs and revenues, you can define an indirect distribution rule.
If it is not practical or possible to distribute indirect costs as soon as they are incurred, you can assign the costs to a "zero profit center" and then distribute them by running reports and evaluations at regular intervals.
Thanks,
Gordon

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.

Doubts on clearing line items in profit centre and deleting the profit cent

hello All
We are using ecc 5.0 and new g/l, document splitting is activated. We are not using classic profit centre accounting.
We have two accounts which has values for profit centre 1010219.
1. 228100 which is assigned in cross company code clearing account
2. 228200 which is assigned in cross business unit ( as a part of zero balance account) in documen splitting.
now i want to clear all he entries for this profit centre and transfer them to another profit centre 1010403.
I am unable to do so as everytime I try to pass cross profit centre entry, Account 228200 gets a balacing line item( as a part of zero balance). this way my profit centre trail balance will never become zero.
can some body help me with this,,,,
1. in classic profi centre we could use t-code ke90 just to pass a document entry in PCA, this is not possible in new g/l... is there alternative.....
please help....
thanks
sanjeev

Hi,
You can try Profit Center Distribution(both sender and receiver gets original account numbers) or Assessment(Assessment cost element shall be a bring in between) to transfer values from multi profit centers to one single profit center or multi profit centers. The cycle can be run on a periodical basis.
Trust this answers to your query!

Sales Documents and Profit Centre and GL Accounts

Currently a when we create a sales document for a plant, that document is posting to a specific GL account (Cash on Hand account) and profit centre. In VKOA, the Account Assignment Group is assignment to a GL Account, and that AAG is assigned to the material master. I want to find out how SAP is currently determining to which profit centre and GL Account it is posting to. The only thing that I can get is the Plant and sales office in the Sales document. I want to know the determination factor

I want to know the determination factor
Have you checked in OKB9 ??
thanks
G. Lakshmipathi

Activity elements planned values not showing in profit centres and cc.

Hi,
i'm currently working on a project involving Co and PS. I'm in charge of the CO module and i've got a problem with planned values on activity elements and in PS. Planned values are calculated on activty elements and so are actual and they show in real time in profit centres and cost centres but not their planned counterpart values. i've absolutely nothing on profit and cost centres reports. Integrated planning is activated in PS and so is project in versions.
i've asked the PS "Expert" and he said it comes from the "plan cost calculation" tab in cj20n, which obviously isn't the cause.
Doesn't it come from the project profile or status profile customizing? (opsa or ok02)?
Can the problem come from CO?
any help appreciated
regards
xavier

Hi Sreenivas,
thanks for your help and sorry for my late answer.
what is the difference between FAGL_CO_PLAN and transaction 1ke0.
when i log on transaction 1ke0, i can see all my planned values.
wouldn't the issue be resolved by launching t-code faglgcle "fi-gl activate update of plan line items" ?
regards
xavier

Profit Centre and Plant

Hi,
What is the link between Profit Centre and a Plant on SAP?
Where are they maintained?
Please advise,
Thanks,
Themba

Hi,
I need to know the link when you doing a normal cost center planning(CCA) because when I look at profit centre line item, it looks like it derives a plant as well.
Please advise,
Thanks,
Themba

Business Area, Profit Centre and Segment

Hi,
In my current business scenario shall I use Business Area, Profit Centre and Segment all together at a time or if I use Business Area and Profit Centre, Segment configuration is not required there. Kindly guide me these 3 activities and its exact purposes in the business.
With regards,
Samrat

Hi ,
We are using ECC 6. In our business scenario profit centre is there. Under Document splitting there is a Business Area and Profit centre in config area.. Should we mention Segment field under document splitting. If we mention segment under Document Splittng inspite of Business Area, what are the problems may arrises ? Or if we mention all 3 (Business Area, Profit Centre and Segment field) in document splitting what may effect in other areas.
Kindly guide me.
With Regards,
Samrat
Edited by: Samrat Roy on Nov 2, 2008 4:42 PM

Keep Profit Centre and Account Assigment Group as non-editable in sale orde

Hello Experts
We are maintaining profit centre and account assignment group as mandatory field in Material Master.
However when we create sales order the data comes in editable mode and users can do the editing in the same. My client requirement is to keep this field as grey (i.e. should not be editable). How to do this.
Please help.
Regards
Hitesh

Hi
Your requirement can be acheived through exit;
Try User exit form USER_EXIT_FIELD_MODIFICATION Program: MV45AFZZ
Regards
Chandrasekhar

Profit Centre and Cost centre not updated

Hi,
I have posted expenses through FB60 and assigned cost centre to the expenses account and not for vendor item. Entry passed was posted.
But when i checked the document, i saw that the cost centre and profit centre is appearing in one line item (i.e. expense line item) only.
Afterwards i made payment through F-53. In this entry also there was no cost centre and profit centre in vendor line item. But the same was appearing in "outgoing bank" line item

Hello,
If you are on classical GL, your vendor line items or customer line item will not be updated automatically.
If you are on New GL functionality and document splitting, you will have profit center updated on customer and vendor line items.
Regards,
Ravi

Relationship BCS-Profit Centre and FAGLFLEXT

Hi,
I'm in ECC5, using BCS 4.0 and BW 3.5.
Our current designed required 2 type consolidation, which is company consolidation and profit centre consolidation. Note that the profit centre consolidation also required balance sheet and profit/loss.
Now, I know that basicly the source of data coming from R/3 is actually the special ledger table FAGLFLEXT. In this table, both company and profit centre shared the same table in order to maintain data consistency.
My question is:
1. Is my understanding about FAGLFLEXT correct?
2. What are the prerequisites steps so that the table FAGLFLEXT can have the profit centre data inside?
Any advise please....
regards,
Halim

Hi Halim,
1. Is my understanding about FAGLFLEXT correct?
FAGLFLEXT is a totals table in which totals records are stored.
It is used in general ledger accounting as the basis for your parallel ledgers. It offers a number of dimensions such as company, account, cost center and product. SAP delivers the totals table FAGLFLEXT for general ledger accounting in the standard system.
2. What are the prerequisites steps so that the table FAGLFLEXT can have the profit centre data inside?
When you activate new general ledger accounting, the totals records in general ledger accounting are updated in the standard totals table FAGLFLEXT. This totals table is deployed in functions such as planning and reporting.
If the standard totals table delivered does not fulfill your requirements, you can define your own totals table. To do this, in Customizing for Financial Accounting (New), choose Financial Accounting Global Settings (New) -> Ledgers -> Fields -> Customer Fields -> Include Fields in Totals Table. Choose Extras -> Create Table Group. When a totals table is created, the system simultaneously generates the corresponding line items table.
Hope this will help.
Regards,
Ferry Lianto
Please reward points if helpful.

Deleting Profit Centres and removing them from Profit Centre Groups

Hi,
I have recently deleted some 3000+ unused profit centres from our system. However the problem I'm having is that these existed in a number of profit centre groups and the values are still
displaying with the text "no valid master record".
Is there a quick way to remove these from the profit centre groups as I don't relish the prospect of removing them all manually. The standard hierarchy is not a problem they have autoatically been removed from there.
thanks in advance.
Paul.

Hi,
The deletion of the profit centres has been completed and wasn't a problem.
It's the removal of the values of these profit centres from various profit centre groups that is causing a problem. They still appear in the groups even though the underlying master data no longer exists.
Paul.

Auto update of Profit Centre in JE for Opening Stock

Hi Experts,
I am using SAP B1 2007B Version and Patch level 15 and entering the Opening Stock of Items in Initial quantities,inventory tracking and Stock posting window and updating the profit centre in distribution rule but the problem is it is not getting updated in the Journal Entry when the back end JE is posting accordingly and for that again we need to update it manually. can any please help me regarding this..
Thanks,
Narsing

Profit Centres are generally applicable only for Revenue & Expense accounts.
When you load the opening balances, it affect the Inventory Account which is an Account Account and that is why there is no Profit Centre marked in the JE.

Distribution Rules in Journal Entries

Currently, cost centres and distributions rules only apply to sales and expenditure type GL accounts. Our client would like this to be extended to all types of GL accounts so as to include balance sheet accounts.
The reason for this is the client uses a job costing add on with SAP Business One. The job costing module works with cost centres which translate into cost centres distribution rules in SAP. The client wants to track these cost centres throughout the entire system, and especially the work in progress account which is a balance sheet account.
Is there any plans for extending the cost centre distribution rules functionality to include balance sheet postings as well as profit and loss postings to allow for full reporting?
Thanks,

Hi,
You may check and post it here: https://cw.sdn.sap.com/cw/community/ideas/sme/b1
Thanks,
Gordon

Division and Profit Centre Relationship?

Hi,
Is anyone able to provide a definition of the objects DIVISION and PROFIT CENTRE and also what their relationship is with each other?
Thanks,
M.

Division : A way of grouping materials, products, or services. The system uses divisions to determine the sales areas and the business areas for a material, product, or service.
A product or service is always assigned to just one division. From the point of view of sales and distribution, the use of divisions lets you organize your sales structure around groups of similar products or product lines. This allows the people in a division who process orders and service customers to specialize within a manageable area of expertise.
Profit Centre: An organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control.
Operating results for profit centers can be analyzed using either the cost of sales approach or the period accounting approach.
By analyzing the fixed capital as well, you can expand your profit centers for use as investment centers.

Profit Centres and Distribution Rules

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