The profit center to be used in the master data of an reporting cost center is the corresponding reporting profit center.

 

The profit center to be used in the master data of an organizational cost center is the organizational profit center of the plant.

 

The profit center to be used in the master data of a cost center in WP1 must be chosen carefully as it is used for several purposes :

  • Fixed costs dashboard
  • Industrial dashboard
  • Working Capital

Two controls must be performed:

 

The profit center that is assigned to a cost center is used to identify to which GBU & value stream the cost center belongs. The profit center used must be included in the right value stream & GBU.

 

Usually a specific value stream is used for production cost centers (PPPP-1xxx & PPPP-2xxx) and a non allocated value stream is used for other cost centers.

  • A profit center with a department = plant code is assigned to production cost centers (PPPP-1xxx & PPPP-2xxx)
  • A profit center with a department = GBU plant is assigned to other cost centers especially for SG&A, R&I...