Revenue posting in Cost centers

In cost center master, there is an option to allow the revenue postings in cost center. I dont understand the significance of this. Should this feature be used or not? Also what is the difference between statistical posting and real posting?

The profit center differs from a cost center in that cost centers merely represent costs arise, whereas the person in charge of the profit center is responsible for its balance of costs and revenues, so inorder to post the revenues into profit center a cost center should be allowed to carry Revenues as data cant be directly posted to profir center
The assignment of this CO object (cost center, order, and so on) to a profit center ensures that the data is passed on to Profit Center Accounting. The profit center cannot, however, be entered directly when the FI posting is made.
Profit Center Accounting (PROFIT CENTER ACCOUNTING) is a statistical accounting component. This means that it takes transaction data posted in other components and represents it from a profit center oriented point of view. The postings in PROFIT CENTER ACCOUNTING are statistical postings, since the profit center is not itself an account assignment object in Controlling

Similar Messages

  • Revenue Posting to Cost Center & Pforfitibility Segment (Object Numbers)

    Dear All,
    I have tested a scnario, i.e., Can we post Revenue to the Cost Center?
    1st Case:- I tried to post Revenue to Cost Center & it was done.  The Cost Center was updated Stastical Posting.  ( Here i had entered Cost Center Manually, no other object was entered except Cost Cneter)
    2nd Case :- I have done the same way but i have entered PSG manually. 
    But here my doubt is :  in COEP Table both documents were updated Object Number AOXXXXXXXXXX10610.  Which is Recon Object Type.  In 2nd case i have entered PSG but in 1st case i have entered only one Cost Center but how the system was updated the CO Object Number AOXXXXXXXXXX10610
    Regards

    Hi,
      As per note 41103 under point 6, revenues posted to cost centers will only be statistical. The category types 11 and 12 are revenue based cost elements.
      As cost centers can carry revenues statistically only, the system has to create a reconciliation object automatically. It is just a generated object (containing charactersistics like company code, plant, business area, profit center,...) and this object is necessary to create as the real posting must be made. Otherwise, CO and FI would get out of sync.
    If only costing based COPA is active reconciliation object ("REO") is posted to if there is no real account assignment for the revenues (no CO-PA object/no revenue order or any other object which can carry revenues->please see note 106968).
    Thanks & Regards
    Waman

  • Is Revenue Elements are posted to cost centers ?

    Hi Experts,
    Some one help me out, Is revenue element are posted to cost centers, if yes, could please elaborate wih example
    Thank you
    Ramakanth

    Hi,
    Posting revenue into Cost center is a Statistical posting and you can not transfer the revenue balance from one cost center to another CO Object.
    When revenue postings need to be post into a cost center, need to be selected revenue postings Check box in cost center master data.
    For ex for posting revenues into Cost center:
    If the client is treating Cost center as a dept and profit center to cost center relation maintained 1:n, then int his scenario you can see the revenue in dept wise. It depends on the client requirement.
    I hope it will clear your doubt.
    Regards,
    Venkat

  • Post to Cost Centers on Production Order Backflush

    I have a question.
    Is it possible to post Goods Issue (Backflush) of components to a Cost Center when doing this via the Production Order Confirmation?
    Normally, when the components of a Production Order are backflushed, instead of posting to a cost center, they post to the Production Order.
    My intention is to use the Cost Center from the Work Center assigned to the Operation in question.
    Is this possible?

    dear Fernando,
    the cost center which u r using for the work center to capture the operation cost only. Ur GI is taking automaticaly with ur confirmation, and goods are getting posted to order. finally the cost which is costing for that work center usage is also go order only.
    if u dont want material cost to flow to order u tick all for all component materials as bulk material in MRP view and issue material aganist cost center in MB1A with mov. type 201 and do the confirmation, so GI will not take place to order.
    i hope this will clear ur doubt
    sree

  • Revenue Posting

    Hello,
    If we are not implementing SD module...then how can we treat revenue posting in CO?
    Thanks
    Edited by: Pari on Apr 8, 2009 10:09 AM

    Hi Ravi,
    Agreed that Cost centers are not meant for revenue reporting. But in this case there are no sales orders or profitability segments. A real object is required to make a posting. Posting to a profit center is a statistical posting. So if you enter only a profit center, the system will throw an error that a real CO object is required for posting. It will not allow you to enter that transaction.
    Hence the suggestion of enabling revenue posting on cost centers.
    Regards,
    Sangeeta
    Edited by: Sangeeta on Apr 8, 2009 3:18 PM
    Edited by: Sangeeta on Apr 8, 2009 3:19 PM

  • How to select revenue for Individual accounts/cost centers

    Hi All,
    Can any one help me in creating a report where we have to include the revenue and cost as row details. and revenue will be related to individual cost centers. I got confused because the revenue will be in accounts (revenue) POV and cost centers will be another POV.
    Please help me in this.
    Thanks
    Edited by: user8021111 on Nov 10, 2009 10:28 AM

    Hi ,
    As per my understanding of this requirement try this thing if you have not already tried it.
    Take Revenue and cost centers in Rows section of dimension layout through grid properties ,and do the specific member selection for these dimension in rows as per the requirement.

  • Accounts - Cost Centers

    Hello Experts,
    Is there any standard SAP report or is there anyway i can get info on the relation between Accounts ( Cost Elements )  and Cost Centers like
    Account - Cost Element -Cost Center.
    I know that cost element only exists for P & L accounts, but then i am guessing that other accounts would not post to cost centers as those would be revenues or payables.
    All answers would be duly rewarded with points.
    Thanks,
    Nandita

    How about the mapping between P/L accounts and Cost Elements ??
    Any idea about that ?
    Thanks,
    Nandita

  • Validations for G/L accounts and Cost Centers!

    Help!!!
    I need to create bunch of validations:
    Ex. If account is 12345  - then is can be posted to only cost center XXX, YYY, ZZZ, BBB...
    If G/L account is 33333 - then it can be posted to cost centers AAA and BBB...
    There are different rules for 137 accounts.
    Here are the questions:
    1. Is it all one validation and 137 steps or are these all different validations?
    2. How can i limit one G/L to many cost centers? What is the formula? It doests let me post If account is 12345 then check cost Center XXX OR YYY OR ZZZ OR....
    It lets me post "OR" only one time.
    Do i need to create a Set for each validation from GS01? or is there any easier formula?  - It is not the range of cost centers, they are just random!
    Please help!!!!!!!!!!!!!!!!!!!!

    I did exacly that!
    I created a SET.
    Then i went to validation and said preriqisites  - account "XXX"
    Check Cost center IN SET
    Message - Error
    I attached my validation to my company code and put it as Active in OB28
    I even ran the program RGUGBR00 to activate all the sets and validations...
    Now i test it and it is still posting to any cost center.
    What did i miss?

  • Revenue & expense posting- use cost centre OR wbs

    Hi All,
    Could you please suggest me if we are making posting for expense then whether to use cost centre or WBS.
    and if we are making posting for revenue then which one to use.
    I want to know where we should use cost centre & where we should use WBS.
    Regards
    Deepak

    Hi Deepak
    Cost Centers are org units in Controlling area which are used to posts periodic costs which are later absorped onto the products using product costing. In the end, you wish to have minimal or zero Over/Under absorption at the cost center level for periods under consideration.
    WBS are task oriented objects and are to be created for specific purpose only (logn term projects, Asset Accounting etc)
    For costs, you can use both cost center and WBS, depending on the nature of the expenditure. eg: Electricity, labour would normally be posted to cost center whereas expenses for specific purpose (training, Asset etc) would be charged off against WBS initially and later settled to respective receivers as maintained in the settlement rule.
    For Revenue, Cost centers receive only statistical postings, whereas real posting can be to IO, WBS, PSG etc.
    In case of WBS, real posting can be made to WBS.
    Hope above information is helpful. Let me know if you need any further inputs
    Regards
    Mustafa

  • Depreciation posting for two different Cost Centers

    Hello everybody,
    My client has an asset that was assigned to Cost Center #1 from the 1st of january to the 20th. Then it was reassigned to Cost Center #2. (Cost Center is configured to be a time dependent field).
    We were expecting the system to split the depreciation amount into these two Cost Centers at the end of the month. Apparently we were expecting too much. The depreciation amount is going completely to Cost Center #2 wich is incorrect.
    Do you think that there is something missing in the configuration? Or SAP just does not split the depreciation amount according to the time intervals? If that is impossible, do you have any alternative solutions?
    Thanks a lot,
    Plácido

    Distribution of Depreciation and Interest
    It is only possible to enter one cost center in the asset master record. You distribute depreciation and interest to different cost centers using settlement within Controlling (CO). The cost center in the asset master record then serves the function of a distribution cost center.
    The disadvantage of this approach is that reports show only the distribution cost center, and not the cost centers that are actually debited. Also, you need to create a separate cost center for the distribution.
    A different approach is to follow this procedure:
    ·        Determine the cost center that you want to be shown in asset reports as the cost center of the asset. Enter this cost center in the asset master record.
    ·        Enter an internal order in the asset master record. The system then posts to this order when it posts depreciation. The system does not post to the cost center.
    ·        Settle the internal order to the cost centers that you want to debit.

  • Disposal cost cost post directly to materials NOT cost centers.

    Dear experts,
    Currently we are posting the disposal cost to the cost center as a cost object.
    Later the disposal cost posted in cost center will be allocated to material through cost center assessment (KSU5) and material level assessment (CON2).
    However, our client said that they want the disposal cost to be directly posted to the material which is scrapped instead of sharing the cost among the relevant cost centers. 
    Is there any good standard SAP solution?
    *I don't want to develop any add-on programs.
    Thanks!

    Hi Jiro
    If the material being disposed is a saleable material -> Post it directly to COPA at material level
    For this,
    - you need to default the Cost element in OKB9 to "Prof Segment"..
    - Map the cost element to PA Transfer Structure FI in KEI2
    If the material being disposed is not a saleable material, then what you are doing makes sense...
    You can also follow the above process for Saleable material in this case for non-saleable material, if you wish
    Br. Ajay M

  • Non operating expenses can only be posted to non operating cost centers

    Hi ,
    Where do we defien the relation/validation " Non operating expenses can only be posted to non operating cost centers" in SPRO ? Is it a part of configuration or validation ?
    Regards,
    Pradeepa

    Hi,
    In my knowledge, it is not configuration issue. Write validation for this. At the time of posting of Non operating expenses, you have to select non operating cost centers. If  you select other cost center system will prompt error message according to your validation.
    Thanks
    Chandra

  • System is trying to post exchange rate rounding revenues to a cost center!

    Hello experts,
    We are trying to clear some accounts payable items and also run the payment program. Both operations are trying to post revenue to a cost center (and profit center), and we get an error (because cost center is locked against revenues, and we want to keep it that way...).
    We have implemented the New GL with document split. We have setup account 80600 for revenue exchange rate differences in configuration. We have setup in OKB9 account 80600 for exchange rate differences to be posted to a profit center. Account 80600 is defined as a revenue element (type 11).
    Can anybody please explain why the system is deriving the cost center and profit center when trying to post the revenue, instead of just the profit center?
    Eventually if I cannot solve this issue, can anybody tell me how to change a cost element category of a cost element (from 11 to 1) which already has transactions posted to?
    Thank you for your help in advance!
    Best regards,
    Jose Eximeno

    Found the answer in the doc. split for controlling setup

  • KB21N, KB11N:how to restrict by cost centers users can post to

    Hello Gurus,
    SAP is not restricting  Cost centers  which can used for internal activity allocation KB21N  and re-posting of primary cost KB11N.
    Users should only be able to post to the authorized cost centers with the standard hierarchy.
    Unfortunately KBXXN transactions are not checking K_CCA authorization object , which other-wise could have been used to restrict user based on responsiblity area ( cost center group)
    Any one came across this scenario, i check all relevant OSS notes related to KB21N . Let me know if i missed any OSS notes
    regards
    SAPfreek

    Hi,
    If you start the transaction KB**N (including KB11N)  you can only use restrictions on the controlling area by using the authority
    object "K_VRGNG". (Please review T-cd:SU24 for the transaction)
    The authority objects "K_CCA" and "K_ORDER" allows to use restrictions on single cost centers and orders but these two authority objects are not checked if you use one of the transactions KB**N It's not possible to use any other restriction than the controlling area for one of the above transactions.
    There are two possibilities to extend the authorization checks in KB**N:
    a) using the validation tool:
       An validation is nothing more than a check whether some customized   conditions are fullfilled or not. If not, the system will send a   self defined message ( Error, Warning, Information ).
       You can find some explanation about validations in our documenation   and in the reference - IMG under:
       Controlling - Controlling General -  Account Assignment Logic.
    b) using the user-exit (Enhancement COCCA002 and COCCA001)
       See note 375725 for additional information
    The enhancement is called up by function module K_ORGUNIT_AUTHORITY_CHECK. Because the standard authorization object
    K_ORGUNIT does not at that point have any fields, this enhancement is the only one executed.
    Please also review  note 370082 for information on the concept of the responsibility area in authorization.
    regards
    Waman

  • Multiple cost centers postings in RE-FX.

    Hello everyone!
    We are currently implementing SAP Flexible Real Estate solution to manage the company's properties. We are facing some problems regarding the distribution of rental costs among multiple costs centers. Our scenario is basically this (example):
    1)In our usage view we have one building with three rental spaces connected to it. Each rental space has different area-measurements and represents different segments in our company (with a specific cost-center associated to it).
    2)The company doesn`t own the building, the structure is rented from a person outside the organization. In this case we`ve created a Commercial lease-in type of contract (external contract, where the company is the user of the object).
    3)This contract contains the three rental spaces mentioned above, and we've configured the contract condition to distribute the rental costs among these objects based on the area measurement.
    4)When we perform transaction RERAPP for this contract to pay the vendor we`ve noticed that even though the costs where divided among the objects, the cost-centers were not updated.
    Considering that the contract doesn't have a cost center field in it and also considering that we have to update multiple cost-centers (with a distribution criteria based on measurements), we would like to know if someone have this kind of problem before?
    We are using an older version of the SAP System(4.7) that doesn't offer as many options as more recent versions (such as 6.0)
    Thanks a lot!
    Gizele Bueno

    Hi,
    In this case, instead of Cost centres, Real estate Objects will act as the Cost carriers. No need for Cost centres at all.
    Since the Real Estate Objects master data contain Profit centre field, the values posted to Real estate Objects will be automatically carried to the Profit centres as well.
    During Periodic processing of Real Estate Contracts, the system will automatically post to the Transfer and Posting. During transfer posting values will be posted from Real Estate Contract to the Real estate Object.
    You can track costs and revenues through Real Estate Objects directly, No need for Cost centres at all.
    Thanks
    Siva

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