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titleUsage of the Profit center in PF1PF2

There are 2 types of profit centers in PF1PF2

1. Reporting profit centers

In PF1PF2, the determination of the business structure is done in the P&L using a reporting profit center  that is in the  COPA posting.  To make this eeveruthing everything works (through interfaces):

  • All material codes should be assigned to a reporting profit center (in the view "costing 1")
  • All objects in CO should be assessed to a profit center in COPA 

2. Organizational profit centers

All CO objects (cost centers, orders, WBS) are assigned to a non reporting profit center


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titleUsage of the Profit center in WP1WP2

In WP1 WP2 the profit center is used to:

Assign the following variances to the P&L (COPA)

  • Variances on purchase
  • Inventory differences
  • Variances on transfer
  • Variances on process order
  • Revaluation variances

Split the Working Capital by enterprise

  • Split the accounts payable and the stocks by CGU (Cash Generating Unit)

Calculate some indicators of the industrial dashboard and identify by Value Stream

  • Inventories
  • Variable costs (the actual ones posted through process order)
  • Fixed costs (from the direct production costs center)
  • Freight on sales costs (from the P&L and freight on sales cost centers)
  • Accounts payable


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titleNote

In WP2, since we can not restrict the usage of the profit center to a certain controlling area, it is recommended that whenever creating a new profit center in a certain controlling area, it's also extended to the VPART nodes in the other active controlling areas.





Info

Profit center master data are displayed with KE53 - Display Profit Center


PF2

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WP2

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title1. Codification

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Rules - Profit center Codification
Rules - Profit center Codification


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title2. Validity period

Usually it is created from the 1st day of the current year to 31.12.9999


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title3 & 4. Name & Long text

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Rules - Profit center name
Rules - Profit center name


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title4. Person Responsible

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Rules - Profit center person responsible
Rules - Profit center person responsible


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title5. Department

Include Page
Rules - Profit center Department
Rules - Profit center Department


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title6. Profit Center Group

Include Page
Rules - Profit Center Group
Rules - Profit Center Group


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title7. Profit Center Consistency checks

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Rules - Profit Center Consistency checks for PF1PF2
Rules - Profit Center Consistency checks for PF1PF2


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title8. Profit Center Lock

Include Page
Rules - Profit Center Lock
Rules - Profit Center Lock


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