There are 2 types of profit centers in PF2: 

1. Reporting profit centers

In PF2, 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 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


In 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


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.




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


PF2

WP2



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