Proper Profit center required for Material Master in Costing1

Dear All
We have 2 Profit center X_Pctr & Y_Pctr, while create a Material code & material code should be valid for X_Pctr, if user give
the Y_pctr the system give the error msg invalid Pctr.
Pls advise any enhancement. Is the BADI_MATERIAL_CHECK correct ?
Regards
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.

Similar Messages

Profit Center field in Material Master

Hi all
We have 9 plants. In 2 plants we want to do profit center field (MARC-PRCTR) mandatory in material master plant date/stor. 2 view. There is any user exit or setting required?
Please guide
Regards

Hi,
The path told in above reply is correct but making profit centre mandatory for only two plants is not possible.
You can make it mandatory for specified Material Type or you can make it mandatory while doing selected Transaction Like MM01 or MM02 etc
Regards,
Amol

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.
i was thinking if we issue this stock on any cost center, change the profit center and then cancel the issuing material document ...
what do you think ,,,, would this effect the accounting badly ?? if so,, please recommend other ways

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 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 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 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

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 .
But my old version its allowing even though OMT4 having Message E
Please anybody help on this
Regards
Vinod

Hi Vinod,
Did you find any solution for your issue?
We need to do some mass update of profit center for a big chunk of our materials by this Dec.
Last time we tried changing the profit center we faced error MM326.
Is there an SAP note or some other solution that can be used for this case?
Thanks
Akash

Profit Center required for Customer line items

Hi Gurus,
Can we make Profir center filed mandatory to customer/vendor line items in New GL

Hi
When you activated New GL Functionality and made Profit Centre Update is mandatory.
At new GL side system will automatically take about updation of profit centre for customers and verdor line items.
Regards.
Chandrasekhar Ponugumati

Profit Center determination for Stock G/L accounts

Hello,
The scenario is as follows:
A single G/L account is defined in our system for Finished Goods. FI documents resulting from material movements are posted to this account in PCA, i.e. table GLPCA shows material document numbers in the reference document field along with the corresponding movement types for this account.
There are a large number of materials with Profit Center 10000 (Industry General) defined in the material master record. All postings to the G/L in question are currently being made against the Profit Center defined in material master. There are also two other Profit Centers defined in the system; 10001 (Industry Motors) and 10002 (Industry Others). The business requirement is that all materials are common to both segments, but the Profit Center should be determined from the sale, i.e. if a material is sold to an Industry Motors customer the Profit Center should be 10001, otherwise it should be 10002.
For the revenue G/L account which is hit at the time of posting of the invoice, a substitution has been configured that determines the appropriate Profit Center from the division specified in the invoice; there are two divisions for Motors and Others respectively. For the stock G/L however, all postings are made to Profit Center 10000 as defined in the material master record.
Since the stock G/L will show postings from all goods movements, including GR, initial entry, GI for delivery, etc., and all materials are common, it is clearly not possible to completely segregate all postings to 10001 and 10002. For example, GR will always be posted to 10000 (General) as it is not known whether this should be in 10001 or 10002 till the time of sale. However, for sales movement type (Goods Issue delivery) at least, postings shoud be made to the appropriate specific Profit Center. For the remaining postings, the business applies a calculated ratio to the acumulated balance.
For the stock G/L, is it possible to derive Profit Center for outward goods movements based on invoice? For example, 1000 USD worth of stock is posted to the G/L in PCA with movement type 101 and Profit Center 10000. 200 USD worth of stock is sold under Motors and 400 USD worth is sold under others. Entries in GLPCA should be:
G/L            Balance Profit Center     Movement Type
31000000   1000       10000              101
31000000   200         10001              601
31000000   400         10002              601
So from this it is easily possible to determine that 200 USD worth of stock has been sold under Motors, 400 USD worth under Others, and 400 USD worth of stock remains unsold.
A solution for this is required. If anyone can think of any other way to accomplish this as well, please share your suggestions. Thanks!
Regards,
Khan

to arrive the profit center at a time of Goods Movment, select the cost center for Industry Motor before to that do the settings in OKB9 for the Cost element a default Profit Center for Cost center.
Hope this helps u in resolve the issue.
rgd
YJ

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:
what is the use of defaulting Profit center in the material master,(without actually defaulting both cost and profit centers in costing views of MM).
(ii) when a cost object (profit center) is being defaulted, why not cost center?
Coz, primarily we need to know the cost in purchasing the material, then add up all costs and OH and then arrive at a selling price, thereby arriving at PROFIT which is where profit center is highly useful.
Plz suggest
regards
sandhya

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.

Open field for cost center on the material master

We have a unique requirement in a facility we intend to implement plant maintenance in to track a cost center to a material by including the cost center on the material master somewhere. Cost center is not a field on any of the material tabs we use for maintenance materials, but the requirement is just that it is tracked in a field, even if it's just an open field like a "user defined field" or another field not used often. We realize there are disadvantages such as the field not being checked against active cost centers, but we are looking at options short of adding cost center as a field manually to a tab (which I believe would require ABAP assistance). I don't think there are any other fields/tabs we are currently not utilizing but I could be wrong... The best option we can think of is adding it in a material characteristic so it shows on the classifications tab, but I thought I would see if anyone has any other ideas.
Thanks

Not sure what is the need of cost center on material master when you want to implement Plant maintenance module. Do you have any specific requirement for this?
Ideally cost center will be derived from either functional location/ equipment (equivalent of material master) on to PM work order or notification.
Can you elaborate the requirement?
After all if you wish to go with cost center, then I suggest it should be at plant level as PM requires plant level distribution. You can add up a custom field and give the reference of cost center data element with help of developer.

Userexit for populate profit center entry without material in T.code CORO.

Hi guru's
we are running T.code. CORO.. we want to populate profit center entry without material. can any one tell me the exact user-exit used for this and . can you tell me the procedure how to find the specific userexit trigger at that point while we are running any T.code.
Thanks in Advance..
GSANA
user exist in PP for transaction code CORO-process order without matl code to populate profit center entry, can u plz find out that & send it to me..

Thank you all for your valuable input.
Srinivasa, your suggestion is very good, especially when calculation of variances/WIP is required. But again as there is no cost relevant material where the WIP/Variances will be settled during settlement process?
1) PP need to create process order without material because changeover cost should not be charged to either material and capacity hours are consumed during changeover. 2) CO need to identify the cost of changeover which should be charged to cost center. So far we have achieved both of these two objectives by the following activities:
Creation of Process Order without material using CORO T.Code say 3 hours of changeover occurred we create order with quantity of 3 Hours. And confirmation of activities quantity 3 using COR6N so cost center is credited by 3 x rate per hour. As there is a separate Process Order type for Changeover we can identify changeover quantity and cost in a given period.
After contributors feedback in this thread I have come to conclusion that I don't need to assign Settlement Profile and PA Structure to Changeover Process Order type. So no need to run Process Order settlement. As there is no specific required for Changeover WIP/Variances as well.

Profit center assignment to material

Hi!
I have divided my profit center hierarchy in such a way - that I could easily prepare a COS profit and loss statement using them. Basically I have such profit centers like:
- Profit on sale of Goods
- Profit on sale of Materials
- Profit on sale of Service
- Costs of Production
- Other costs of sales
- Costs of Administration
As you can see I didn't reflect in this hierarchy an organization structure.
I was wondering which profit center could be used for Material master assignment... Maybe you could help me - cause I didn't have much in common with MM before.
I know that for sales order there has to be assigned one of:
- Profit on sale of Goods
- Profit on sale of Materials
- Profit on sale of Service
But I don't know whether it is OK to use them for materials master assignment. Can you suggest me some solution?
Best wishes,
Karol

Hi,
I think you can assign the following:
Costs of Production
Profit on sale of Materials
Hope this helps.
Please assign points as a way to say thanks.
Regards,

How to make default profit center no in MM Master

Hi Experts,
I want to make profit center in mmaterial master costing one tab. how can i fix this.
For example
I have profit center 9999, i want fix default for all material master in Costing1 tab profitcenter field.
Guid on this

Hi Anil,
Just use tcode MM02. Enter the material number you want to enter profit center. When you enter after inserting material number it list you difference veiw/tabs, select COSTING1 tab and enter, system will ask to you to enter the plant. Give plant where this material has been created.
If you want to maintain mass change then goto MM17.

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.

Proper Profit center required for Material Master in Costing1

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