ac612 profit center accounting in new

AC612Profit Center Accounting in New

General Ledger AccountingSAP ERP - Financials

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Participant HandbookCourse Version: 92Course Duration: 2 Day(s)Material Number: 50094736

An SAP course - use it to learn, reference it for work

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Copyright

Copyright 2009 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purposewithout the express permission of SAP AG. The information contained herein may be changedwithout prior notice.

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About This HandbookThis handbook is intended to complement the instructor-led presentation of thiscourse, and serve as a source of reference. It is not suitable for self-study.

Typographic ConventionsAmerican English is the standard used in this handbook. The followingtypographic conventions are also used.

Type Style Description

Example text Words or characters that appear on the screen. Theseinclude field names, screen titles, pushbuttons as wellas menu names, paths, and options.

Also used for cross-references to other documentationboth internal and external.

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EXAMPLE TEXT Names of elements in the system. These includereport names, program names, transaction codes, tablenames, and individual key words of a programminglanguage, when surrounded by body text, for exampleSELECT and INCLUDE.

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Example text Exact user entry. These are words and characters thatyou enter in the system exactly as they appear in thedocumentation.

Variable user entry. Pointed brackets indicate that youreplace these words and characters with appropriateentries.

2009 2009 SAP AG. All rights reserved. iii

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About This Handbook AC612

Icons in Body TextThe following icons are used in this handbook.

Icon Meaning

For more information, tips, or background

Note or further explanation of previous point

Exception or caution

Procedures

Indicates that the item is displayed in the instructor'spresentation.

iv 2009 SAP AG. All rights reserved. 2009

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ContentsCourse Overview ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Course Goals .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viiCourse Objectives ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii

Unit 1: General Ledger Accounting (New) ..... . . . . . . . . . . . . . . . . . . . . . . 1New General Ledger Accounting - Basic Information .. . . . . . . . . . . . .2Global Settings in the New General Ledger for Profit Centers.. . .9

Unit 2: Profit Center Master Data in New General LedgerAccounting ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Profit Center Master Data.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Profit Center Assignments ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Unit 3: Actual Postings for Profit Center Accounting in NewGeneral Ledger Accounting .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Profit Center Update: Overview... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70Integration with Asset Accounting .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Data Flow from Materials Management.. . . . . . . . . . . . . . . . . . . . . . . . . . . 86Data Flow from Cost Object Controlling ... . . . . . . . . . . . . . . . . . . . . . . . . 99Transfer from Sales and Distribution .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112Allocations in Profit Center Accounting .. . . . . . . . . . . . . . . . . . . . . . . . . .122

Unit 4: Profit Center Planning in New General LedgerAccounting ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

Planning Configuration and Manual Planning.. . . . . . . . . . . . . . . . . . .140Integrated Planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156

Unit 5: Information System ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175Overview ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176Reporting with Drilldown Reporting... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196

Appendix 1: Special Cases for Profit Center Derivation .... 221

2009 2009 SAP AG. All rights reserved. v

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Contents AC612

vi 2009 SAP AG. All rights reserved. 2009

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Course OverviewCourse AC612 teaches the knowledge and skills you need to set up ProfitCenter Accounting in an SAP ERP Financials system with the new GeneralLedger Accounting activated. In addition to the basics of new General LedgerAccounting, the course gives you a detailed overview of the value flows in an SAPsystem. The course concentrates on flexible drilldown reporting for the analysis ofplanned and actual data.

Target AudienceThis course is intended for the following audiences:

Project team members responsible for implementing Profit CenterAccounting

People responsible for Financial Accounting

Course PrerequisitesRequired Knowledge

Basic knowledge or experience with Profit Center Accounting AC200 (Financial Accounting Customizing I: General Ledger, Accounts

Payable, Accounts Receivable), or AC210 (New General Ledger (in SAP ERP))

Recommended Knowledge

Knowledge of Financial Accounting and Controlling AC010 (Business Processes in Financial Accounting)

2009 2009 SAP AG. All rights reserved. vii

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Course Overview AC612

Course GoalsThis course will prepare you to:

Set up Profit Center Accounting in an SAP ERP Financials system where thenew General Ledger Accounting has been activated

Describe and maintain global Profit Center Accounting settings, includingmaster data

Understand the transaction data that is generated as a result of actual postingsin Profit Center Accounting

Understand the transaction data that is generated as a result of plan postingsin Profit Center Accounting

Use your own reports to analyze the transaction data in Profit CenterAccounting

Course ObjectivesAfter completing this course, you will be able to:

Name the benefits of using the new General Ledger Accounting for ProfitCenter Accounting

Set up Profit Center Accounting in SAP ERP Financials with the newGeneral Ledger Accounting activated

Create your own profit center reports in the new General Ledger Accounting

viii 2009 SAP AG. All rights reserved. 2009

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Unit 1General Ledger Accounting (New)

Unit OverviewWith SAP ERP Central Component, the SAP system offers an interestingalternative in General Ledger Accounting:

The new General Ledger Accounting (new G/L)

Unit ObjectivesAfter completing this unit, you will be able to:

Describe how the new general ledger works in conjunction with ProfitCenter Accounting

Understand the settings for defining ledgers Understand the settings for document splitting Understand the settings for real-time CO FI integration

Unit ContentsLesson: New General Ledger Accounting - Basic Information .. . . . . . . . . . . . .2Lesson: Global Settings in the New General Ledger for Profit Centers .. . .9

Exercise 1: Global Settings in the New General Ledger .. . . . . . . . . . . . . . 25

2009 2009 SAP AG. All rights reserved. 1

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Unit 1: General Ledger Accounting (New) AC612

Lesson: New General Ledger Accounting - BasicInformation

Lesson OverviewWith SAP ERP Central Component, SAP offers an interesting alternative inGeneral Ledger Accounting:

General Ledger Accounting (new) - or new G/L.

Lesson ObjectivesAfter completing this lesson, you will be able to:

Describe how the new general ledger works in conjunction with ProfitCenter Accounting

Business ExampleYour company management is considering using Profit Center Accounting in newGeneral Ledger Accounting for an implementation of SAP ERP Financials.

They would like to know what advantages this has in terms of Profit CenterAccounting.

Advantages of New General Ledger Accounting

Figure 1: The New General Ledger Accounting (New G/L)


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AC612 Lesson: New General Ledger Accounting - Basic Information

Advantages of New General Ledger Accounting Overview

The new general ledger in SAP ERP offers the following benefits over theconventional General Ledger:

The new general ledger uses an extended data structure as standard. Youcan also add customer fields to the totals table in the General Ledger, forinclusion in financial statements.

By splitting documents in real time (=> online split), you can preparefinancial statements for entities such as segments and profit centers.

Reconciliation between CO and FI can be carried out in real time real-timeintegration between CO and FI making time-consuming reconciliationactivities a thing of the past.

Figure 2: Options in New General Ledger Accounting


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Figure 3: General Ledger Accounting (New): One Component - ManyFunctions

Prior to SAP ERP, SAP customers had to have a variety of components installedand in use to optimally fulfill the international or industry-specific requirementsand standards. The situation may be even more critical in cases where serviceenterprises (for example, in the areas public sector, insurance companies, media)increasingly require financial statements that fulfill other criteria, such as grant,fund, or industry sectors. The increasing importance of IAS/IFRS as an accountingprinciple is giving rise to increased demands for the improved quality andcapability of modeling segment reporting. A standardized solution is also relevantto areas such as fast closing and Sarbanes-Oxley.

Overview of the totals tables in the conventional components:

Classic FI: Table GLT0 COS ledger: Table GLFUNCT Reconciliation ledger: Table COFIT EC-PCA / classic Profit Center Accounting: Table GLPCT


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Figure 4: Advantages of the New General Ledger Overview

The new General Ledger Accounting and new general ledger are both abbreviatedas "new G/L". Basic architecture of the new G/L in SAP ERP: SAP Note 918675.The user interfaces for entering data and postings are nearly identical to the UIsin the previous release, despite all the new features.

Cost-of-Sales Accounting and Profit Centers

Figure 5: Assignment of Functional Areas in the P&L Statement

When you use the period accounting approach, the system breaks down theoperating results by revenue and cost element. This makes it possible to recognizewhich factors of production cause the costs that are incurred. The total costs for the


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period can then be compared to the total revenues earned during the same period.These costs include the costs of all the goods and services that were producedin the period but have not yet been sold (increases in stock) plus the goods andservices produced in previous periods and sold in this period (reductions in stock).This sum, together with the capitalized internal activities and the changes to workin process, yields the total result for the period.

The more sales-oriented cost-of-sales approach compares the costs to thecorresponding quantity structure of the revenues. Revenues are only comparedto the costs incurred for the quantity of goods or services sold. When productsare sold from stock, it may be that the costs were incurred during a previousperiod. In this approach, no distinction is made between different cost elements.Instead, resource usage is divided according to the functions R & D, production,sales, and administration.

To calculate profits according to the cost-of-sales approach, you need to use thederived functional area characteristic.

You can use period accounting and/or cost-of-sales accounting in Profit CenterAccounting. If you want to use cost-of-sales accounting, you have to activate theCOS accounting scenario and configure the corresponding settings.

Figure 6: Cost-of-Sales Accounting: Overview


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This slide shows the following example postings:

Sales revenues from SD (1) Cost of goods sold from MM goods issue (2) Production variances from the settlement of the production order (3) All debits and credits of all the production cost centers

(overabsorption/underabsorption) (3a) All postings to cost centers affecting the functional areas Sales,

Administration and Research & Development (3b) Adjustment postings resulting from real-time integration back to new G/L in

the case of secondary, cross-functional area postings (3c) Postings to profitability segments (4) Other expenses (5)


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Lesson Summary

You should now be able to: Describe how the new general ledger works in conjunction with Profit

Center Accounting


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AC612 Lesson: Global Settings in the New General Ledger for Profit Centers

Lesson: Global Settings in the New General Ledger forProfit Centers

Lesson OverviewThis lesson shows the basic settings needed in the new general ledger to assignprofit center accounts. The settings apply not only to profit centers, but also toall additional account assignments in Financial Accounting for which you wantto map complete financial statements.


Understand the settings for defining ledgers Understand the settings for document splitting Understand the settings for real-time CO FI integration

Business ExampleYour company activated the new general ledger to capture the benefits of asingle, uniform data structure, document splitting, and real-time CO FIintegration. After migration from the conventional general ledger to GeneralLedger Accounting (new), you want to map organizational divisions as profitcenters to report full financial statements and profitability analysis. You are amember of the project team that has been asked to verify whether the necessarysettings have been made in the test system.


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Ledger Definition and Profit Centers

Figure 7: Activating the New General Ledger

The new general ledger is always active in new installations (SAP ERP). Ifexisting customers decide that they want to use the new general ledger, it must beactivated using a Customizing transaction (=> FAGL_ACTIVATION). In practice,setting the activation switch (for existing customers) is one of the final activities ofa migration project. The activation switch is set for each client. The activationcauses system-wide changes that affect the application and Customizing paths.


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Figure 8: Benefits in Detail - Extended Data Structure

More entities are updated in the totals table of the new general ledger (=>FAGLFLEXT) than possible in the classic totals table (=> GLT0). The newstandard fields include profit center, segment, functional area, and cost center. Youcan expand the totals table FAGLFLEXT with additional fields in addition to theSAP fields that are already present; these can be new, customer-specific fields.

Figure 9: Scenarios - Definition and Assignment


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The fields updated using these scenarios can then be used to construct businesssituations - for example, Profit Center Accounting with segment reporting and/orcost-of-sales accounting. To see the available scenarios, choose the followingCustomizing path: Financial Accounting (New) Financial Accounting GlobalSettings (New) Ledgers Fields Display Scenarios for General LedgerAccounting. You cannot define customer-specific scenarios. The deliveredscenarios are assigned to the ledgers in Customizing: Financial Accounting (New) Financial Accounting Global Settings (New), Ledgers Ledger AssignScenarios and Customer Fields to Ledgers. You can assign one, several, or evenall six scenarios to a ledger. The decision as to how many scenarios you shouldassign depends solely on the question: Which situations or business aspects doyou want to model in the general ledger?

Figure 10: Entry and General Ledger View

The posting screens and document views look the same from the end userperspective. However, the general ledger view provides the additional internalview of the document.


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Figure 11: Scenarios - Assignment and Functions (1)

The Purchased Services account (417000) is defined as a primary cost elementin CO, and therefore requires a CO-relevant account assignment at entry. Theprofit center characteristic and functional area are then derived from the COobject (such as cost center). You can now derive the segment characteristic fromthe profit center characteristic.

If you do not assign any scenarios, none of the entities will be inherited to thegeneral ledger. Impact of a missing scenario assignment: If you now call up abalance sheet (and profit & loss statement), the system displays the amount of50.00 on the Activities Purchased account. However, it is impossible to assignthe accounting transaction to a business area, a functional area, a profit center,or any other entity. Therefore, it is also impossible to call up segment financialstatements if you have not assigned any scenarios to a ledger. Subsequent changesof scenario assignments to a ledger in General Ledger Accounting can result inserious inconsistencies in document processing. Deleting scenario assignmentscan also result in inconsistencies. An appropriate warning message appears whenyou try to make these changes in Customizing.

Excerpt from SAP Note 891144 - New GL/Document splitting: Risksw/subsequent changes: In contrast with the special ledger or the EC-PCA,subsequent changes are not considered in the general ledger (new) since theledgers of the general ledger (new) are not comparable with a special ledger orthe EC-PCA. In fact, the general ledger (new) is a general ledger from a businesspoint of view and is therefore legally comparable with the classic General Ledger,the GLT0 ledger 00. Thus, there is an auditing requirement. ...


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Figure 12: Scenarios - Assignment and Functions (2)

Since the profit center update and segment reporting scenarios are assigned to theleading ledger, 0L, these two entities are both updated in the general ledger anddisplayed in the corresponding general ledger view. The Functional Area field, forexample, is not updated or displayed in the general ledger view, since this scenariowas not previously assigned to the leading ledger. However, scenario assignmentcannot manage a "zero balance setting" for any given entity.In more detail, using a profit center (=> PC) as an example: It would not (yet) bepossible to create complete profit center financial statements, because the profitcenter has not (yet) been enriched in posting lines 2 and 3. To do this, you alsohave to configure and activate document splitting.


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Figure 13: Using the Segment Entity

Segments can be used to fulfill the requirements of international accountingregulations (=> IAS/IFRS / US-GAAP) after you use segment reporting.Excerpt from IFRS8: Operating Segments5. An operating segment is a component of an entity:a) that engages in business activities from which it may earn revenues and incurexpenses (including revenues and expenses relating to transactions with othercomponents of the same entity);b) whose operating results are reviewed regularly by the entity's chief operatingdecision maker to make decisions about resources to be allocated to the segmentand assess its performance; andc) for which discrete financial information is available.Otherwise, you can also use the objects business area or profit center. The segmentis also available, since the business area and/or profit center were often used forother purposes in the past, and, therefore, fulfill other requirements.


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Document Splitting and Profit Centers

Figure 14: Document Splitting Reasons

The system requirements could be even simpler - it is not necessary for theexpense lines to contain different profit center assignments. The root of therequirement is that, for example, the payable items line (of the general ledgerview) must have a "profit center account assignment" if proper profit centerfinancial statements are to be created at all.

Figure 15: Document Splitting Characteristics


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To define the splitting characteristics, choose the following menu path inCustomizing: Financial Accounting (New) General Ledger Accounting (New) Business Transactions Document Splitting Define Document SplittingCharacteristics for General Ledger Accounting. The system uses the assignedscenarios to propose useful document splitting characteristics. If you decide touse more splitting characteristics, make sure that they are contained in at least oneledger. Set the Zero Balance indicator, if you want to create a balance sheet forthe characteristic. This ensures that the balance of these entities is set to 0 ineach posting, which makes an "entity balance sheet" possible. The required fieldindicator has two meanings: Firstly, it extends the field status for accounts whosecharacteristics are not ready for input during document entry, or for accountsthat cannot be controlled using field status. Example: The vendor line shouldalways contain a profit center or segment. Secondly, it checks whether a businesstransaction variant that is equivalent to a business-process is used (and thus,a splitting rule can be found).

Figure 16: Activating Document Splitting

To activate document splitting, go to Customizing for the new general ledger:Financial Accounting (New) General Ledger Accounting (New) BusinessTransactions Document Splitting Activate Document Splitting. The standardsplitting procedure delivered by SAP is splitting procedure 0000000012. If youactivate document splitting, there is no reason why you should not activateinheritance as well. Activating the inheritance when document splitting is activeallows you to post documents without having to make any other changes in


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Customizing. Inheritance is carried out online at the document line level. If youwant to use a default account assignment, you must first create a new constant inCustomizing:Financial Accounting (New) General Ledger Accounting (New) BusinessTransactions Document Splitting Edit Constants for Nonassigned Processes

Figure 17: Document Splitting - Active Split

The entities that you defined as document splitting characteristics are inheritedby the posting lines without account assignment. As you can see clearly on theslide, the selected characteristics balance to zero. In this rule-based split, thevendor and tax lines (items 1 and 4) are split in the same way as the expenselines/the expense basic item category (items 2 and 3; expense accounts 477000and 417000) in the general ledger view.


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Figure 18: Document Splitting - The Splitting Logic of an Active Split

Figure 19: Document Splitting Zero Balance Formation

Briefly, a splitting process is the total of all the splitting rules of all businesstransactions. The splitting process defines the way in which a document splitshould be carried out. Specifically, this means that each splitting procedurecontains a definition that describes how the individual item categories are to be


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treated in the individual business transactions; for example, whether or not thesystem should copy the account assignment of a customer item from the revenueitem in a customer invoice. The business transaction is a general subgroup ofactual business processes, which is delivered by SAP and to which extensive itemcategories are assigned. The business transaction variant is a specific version ofthe business transaction provided by SAP, and is a (technical) representation ofa real business process for document splitting. An item category is a (technical)representation of the posted document lines. It describes the items that canbe found within a document (a business transaction). They are derived fromthe balance types of the G/L accounts, among others. In other words, the itemcategory is the semantic description used for document splitting. The individualsplitting rules define which item categories can/should be split (=> item categoriesto be edited), and at the same time, determines the basis on which the split cantake place (=> base item categories).

Figure 20: Simulating the General Ledger View

In Release SAP ERP 6.0 and later, you can simulate the general ledger view aswell as the entry view before posting. This allows you to analyze, earlier and moreeffectively, errors that would cause a termination during posting. You can displaythe detail data of the document split using the expert mode.


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Figure 21: Document Simulation Expert Mode I

Figure 22: Document Simulation Expert Mode II


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Real-Time CO-FI Integration and Profit CentersReal-time integration is used to copy internal Controlling postings to FinancialAccounting and its account assignments, including Profit Center Accounting.

Figure 23: Real-Time CO-FI Integration

SAP has had real-time integration from financial accounting (=> FI) tomanagement accounting (=> CO) for a long time. The other way around,from CO to FI was previously not possible in real time. This affects changesto characteristics for the following processing/transactions such as: Periodicclearings (assessment, distribution, reposting). Manual repostings in CO [=>transaction KB11(N)]. Activity allocations [transaction KB21(N)]. Settling ordersor projects [transactions KO88 and CJ88]. The reconciliation ledger that was tobe maintained in the cost element invoice is always used to reconcile CO withfinancial accounting. Summary standardizing entries and reconciliation postingswere made with periodic program runs for each cost element/expense account:Transaction KALC. The transaction KALC is no longer usable after activating thenew general ledger by default you will be notified of the real-time integrationbetween CO and FI.


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Figure 24: Variants for Real-Time Integration

To define the variants for real-time COFI integration, choose the followingCustomizing path:Financial Accounting (New) Financial Accounting Global Settings (New)Ledgers Real-Time Integration of Controlling with Financial AccountingDefine Variants for Real-Time IntegrationIn a subsequent step, assign the variant to your company code(s). To determine thecharacteristic changes for which real-time FI document lines need to be created,you can also define Boolean rules in addition to the checkboxes, or implementyour own logic by programming a BAdI. It is impractical to select characteristicsthat were not originally assigned to at least one ledger using the scenarios. Thekey date activation date determines the time (or date of the CO document posting)after which the reconciliation between CO and FI using the real-time integrationcan be executed. You can also generate FI documents for CO documents that wereentered before activation of the new general ledger. You must define an accountdetermination to be able to transfer secondary cost elements from CO into FI. Tomaintain account determination choose:Financial Accounting (New) Financial Accounting Global Settings (New)Ledgers Real-Time Integration of Controlling with Financial AccountingDefine Account Determination for Real-Time IntegrationYou can also transfer primary costs into FI using an account determination, whichnormally works with the original cost elements.


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Figure 25: Real-Time Integration: Example

This slide illustrates real-time COFI integration based on the profit centercharacteristic. The functional area, segment, and business area characteristics arenot considered in the example for simplicity's sake. The Financial Accountingdocument (=> 2b.) is posted in real time (for each CO document) - a (periodic)reconciliation using the reconciliation ledger in transaction KALC is not involved.The above diagram omits the clearing accounts for each profit center forsimplicity's sake. These clearing accounts are needed if the profit center representsan independent accounting unit. You define them in account determination forreal-time integration.


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Exercise 1: Global Settings in the NewGeneral Ledger

Exercise ObjectivesAfter completing this exercise, you will be able to: You understand the settings in the new general ledger that are relevant for

Profit Center Accounting

Business ExampleYour company wants to report full profit center financial statements at the productlevel. You need to check whether the settings for the new general ledger in thetest system allow this.

Task:You need to check the settings in the test system for ledger definition, documentsplitting, and real-time integration.

1. Does the test system allow you to carry out Profit Center Accounting withprofit and loss statements based on cost-of-sales accounting?Can you evaluate the segments?

2. Can you report a zero balance at the profit center level?

3. Can secondary cost postings from CO be transferred to the new generalledger?


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Solution 1: Global Settings in the NewGeneral LedgerTask:You need to check the settings in the test system for ledger definition, documentsplitting, and real-time integration.

1. Does the test system allow you to carry out Profit Center Accounting withprofit and loss statements based on cost-of-sales accounting?Can you evaluate the segments?

a) Implementation Guide: Financial Accounting (New) FinancialAccounting Global Settings (New) Ledgers Ledger AssignScenarios and Customer Fields to Ledgers

The following scenarios are active in ledger 0L: profit center update,segment reporting, and cost-of-sales accounting.

2. Can you report a zero balance at the profit center level?

a) Implementation Guide: Financial Accounting (New) GeneralLedger Accounting (New) Business Transactions DocumentSplitting Define Document Splitting Characteristics for GeneralLedger Accounting

The Profit Center and Segment characteristics are set to balance 0as required characteristics. This ensures that both profit center andsegment are always assigned accounts.

b) Implementation Guide: Financial Accounting (New) GeneralLedger Accounting (New) Business Transactions DocumentSplitting Activate Document Splitting

Document splitting is active and the inheritance indicator is set. As aresult, the document splitting characteristics are inherited in everydocument line.

Continued on next page


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3. Can secondary cost postings from CO be transferred to the new generalledger?

a) Implementation Guide: Financial Accounting (New) FinancialAccounting Global Settings (New) Ledgers Real-Time Integrationof Controlling with Financial Accounting Assign Variants forReal-Time Integration to Company Codes

Company code 1000 was assigned variant EZI.

b) Implementation Guide: Financial Accounting (New) FinancialAccounting Global Settings (New) Ledgers Real-Time Integrationof Controlling with Financial Accounting Define Variants forReal-Time Integration

Cross-profit center and cross-segment real-time integration is activein variant EZI.


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Lesson Summary

You should now be able to: Understand the settings for defining ledgers Understand the settings for document splitting Understand the settings for real-time CO FI integration


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AC612 Unit Summary

Unit SummaryYou should now be able to: Describe how the new general ledger works in conjunction with Profit

Center Accounting Understand the settings for defining ledgers Understand the settings for document splitting Understand the settings for real-time CO FI integration


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Unit Summary AC612


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AC612 Test Your Knowledge

Test Your Knowledge

1. Profit Center Accounting allows zero balance formation in general.Determine whether this statement is true or false. True False


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Test Your Knowledge AC612

Answers

1. Profit Center Accounting allows zero balance formation in general.

Answer: False

In addition to activating the profit center update scenario, you also needdocument splitting for the profit center characteristic with inheritanceindicator.


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Unit 2Profit Center Master Data in New

General Ledger Accounting

Unit OverviewThis unit how to define the master data of profit centers and assign them toaccount assignment objects in an SAP ERP system.

Unit ObjectivesAfter completing this unit, you will be able to:

Create the standard hierarchy Maintain profit center master data Assign profit center master data to the account assignment objects in SAP

ERP

Unit ContentsLesson: Profit Center Master Data .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Exercise 2: Master Data ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Lesson: Profit Center Assignments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Exercise 3: Profit Center Assignments ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61


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Unit 2: Profit Center Master Data in New General Ledger Accounting AC612

Lesson: Profit Center Master Data

Lesson OverviewYou define profit centers and other master data in Financials.


Create the standard hierarchy Maintain profit center master data

Business ExampleYour project team wants to find out about the master data definition of profitcenters in the new general ledger. You want to find out about the technical settingsto present them at a project meeting.

Profit Center Structure

Regional profit center structure (sales-oriented) Functional profit center structure Product-related profit center structure Business unit profit center planning

Profit Center Accounting supports a division of the enterprise into areas ofresponsibility for profits. You can divide your enterprise according to thefollowing aspects:

Geographical structure of profit centers (locations, regions, and so on) Product-related structure of profit centers (divisions, product lines, and so

on) Functional structure of profit centers (production, sales, research, and so

on)

Mixed forms of these structures are also possible. You can, for example, opt for aregional structure based on business locations and then subdivide each location bythe products made there.

You create the profit center master data accordingly to define this organizationalstructure. For evaluations at a higher level of aggregation, you can combine profitcenter groups. The standard hierarchy is a special profit center group. In additionto this, you can define alternative groups.


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AC612 Lesson: Profit Center Master Data

Figure 26: The Profit Center Standard Hierarchy

To create a profit center, you first have to define a hierarchical profit centerstructure with the following menu paths:Customizing: Financial Accounting (New) General Ledger Accounting (New) Master Data Profit Center Define Profit Center Standard Hierarchy inControlling AreaApplication: Financial Accounting General Ledger Master RecordsProfit Center Standard Hierarchy CreateThis structure is called the standard hierarchy. The standard hierarchy is a treestructure that contains all the profit centers in a controlling area. When you createa profit center, you have to assign it to a hierarchy area (hierarchy node) in thestandard hierarchy. This ensures that all profit centers in the controlling areaend at the same node.

The first step is to establish the name of the standard hierarchy for the profitcenters. The system creates the top node or group of the standard hierarchyautomatically when you save your settings. You can then maintain it to create thelower level nodes required to complete your hierarchy.

You can maintain the standard hierarchy in Customizing or from the applicationmenu.

In addition to the standard hierarchy, you can also define profit center groups(alternative hierarchies), which you can use in reporting, planning, and allocation.


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Figure 27: Profit Center Master Data

A profit center is defined at controlling area level. When creating a profit center,you enter the name of the profit center and the period of validity. Profit centermaster data is time-dependent, which means that you can create different datafor different periods. You can copy master data information from an existingprofit center.

You maintain the important master data - such as the profit center name anddescription, the person in charge, and the department - on the basic screen.

The Hierarchy Area field defines the assignment to a node in the standardhierarchy.

By selecting the lock indicator, you can lock the profit center against postingsfor the specified time interval. If an account assignment object is assigned to alocked profit center and you attempt to post to it, the system will display an errormessage and does not post the data.

You can enter more information for the profit center on additional screens, such asaddress and communication data and long text.

By default, a profit center is assigned to all the company codes within thecontrolling area. You can exclude certain company codes for a profit center bynot selecting them. If you attempt to post data to profit centers in company codesthat are not assigned to the profit center in question, the system will not carryout such postings.

To create profit centers, use the following menu paths:In the application menu: Accounting Financial Accounting General Ledger Master Records Profit Center Individual Processing Create


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In Customizing: Financial Accounting (New) General Ledger Accounting(New) Master Data Profit Center Define Profit Centers

Figure 28: Profit Center - The Dummy Profit Center

The dummy profit center is the primary default value for postings to an accountassignment object in an accounting area if no other profit center is assigned. Youcan find out which objects are not assigned to profit centers by analyzing thepostings assigned to the dummy profit center. You can also assess or distributedata from the dummy profit center to the desired profit centers.

In the new general ledger - in contrast to classic Profit Center Accounting - you donot have to define or use a dummy profit center. Postings to account assignmentobjects that do not have assigned profit centers are simply made without profitcenters - that is, the profit center field remains blank in the correspondingdocument items. Postings without profit centers can be assessed or distributed tothe desired profit centers (similar to postings to a dummy profit center).

If you define a dummy profit center, make sure you do not use it as a default profitcenter by mistake. Define separate profit centers for this case instead. If you usedocument splitting, using the dummy profit center may have the following effect:Payables can be allocated to the dummy profit center as a result of documentsplitting if no profit centers are assigned to the account assignments of thecorresponding expense lines. You cannot repost the payables manually in this case.If you activate document splitting for document centers, we do not recommendusing a dummy profit center. If you want to make sure that a profit centeraccount is assigned in all document lines, you can use set the profit center as arequired-entry field in Customizing for document splitting. Note, however, thatif you do so, and there are postings to account assignment objects that do nothave profit center assignments, a termination will occur with the error message


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Accounting field segment is not filled in document line. If you still use classicProfit Center Accounting in parallel to the new general ledger, you have to definea dummy profit center.

A special Customizing transaction is available to create the dummy profit center.Financial Accounting (New) General Ledger Accounting (New) MasterData Profit Center Create Dummy Profit CenterThis procedure is almost the same as that for creating normal profit centers - theonly differences being:

You do not specify a validity period. The dummy profit center isautomatically valid for the maximum validity period.

You cannot copy the dummy profit center from an existing profit center. A flag identifying the profit center as the dummy profit center is set

automatically (in the indicator folder).

You change and display the dummy profit center using the normal maintenancetransactions for profit centers.

Figure 29: Assigning Default Profit Center Accounts

Default profit centers are profit centers that do not reflect an organizational areaof responsibility, but instead are used to collect costs, revenues, and postings tobalance sheet accounts within a posting period. At the end of the period, you canassess or distribute the posted data from the dummy profit center to the desiredprofit centers. Clearing profit centers are often referred to as default profit centers.In contrast to the dummy profit center, however, default profit centers can bederived specifically based on other information.


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The procedure for creating master data for default profit centers is like that forcreating master data for your true profit centers. Default profit centers have thesame structure as all other profit centers. In contrast to the dummy profit centers,default profit centers can be derived specifically from other information, such asthe company code or account.

You can define default profit centers for each company code and account intervalunder the following menu path in Customizing:Financial Accounting (New) General Ledger Accounting (New) MasterData Profit Center Assign Default Profit Center to AccountsThe default profit center is derived under the following circumstances:

If no profit center is specified in the posting If a profit center cannot be derived from the cost element, for example, using

the cost center, the order, or the like

This means derivation is only helpful for P&L and balance sheet account forwhich the profit centers are not derived or specified. Derivation takes place whenthe posting is made. You should only define default profit centers for accountsfor which document splitting is not active. Select an account interval and assignthe profit center to be derived. If you leave the Account to field blank, it is set tothe same value as the Account from field.

If you use document splitting in the new general ledger, there is a similar function,the default account assignment (in Customizing under Financial Accounting (New) General Ledger Accounting (New) Business Transactions DocumentSplitting Edit Constants for Nonassigned Processes).You can assign a default account assignment (such as a profit center or segment)here that is used whenever this object is missing in the item. If a default value(constant) is used, the quality of the dataset is poorer. You have to distributethese values at the end of the month, through either manual postings or allocation.If you use a default value, you should at least carry out the test phase of animplementation project without a default value, to ensure you detect potentialerrors in document splitting.


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Figure 30: Collective Master Data Processing

Collective processing is particularly useful when you need to adapt existing datato a change in circumstances, for example, if certain master data fields (such as thedepartment, person responsible) or company code assignments have to be changed.

You can call collective processing in the following areas:Accounting Financial Accounting General Ledger Master RecordsProfit Center Collective Processing Master DataAccounting Financial Accounting General Ledger Master RecordsProfit Center Collective Processing Company Code Assignment

Figure 31: Accounts in Profit Center Accounting


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Profit Center Accounting is based on the chart of accounts that is assigned toFinancial Accounting. These accounts include:

Stock accounts: The system uses these accounts to display the liability andequity sides of the balance sheet. These accounts are not used in controlling.For example, there are no material stocks for cost centers in the standardsystem.

P&L accounts: The system uses these accounts to generate the profit andloss statement. If you want to use these P&L accounts in controlling as well,you create primary cost elements in controlling, for example, for materialconsumption by cost objects or cost centers.

Secondary cost elements: These costs are generated through allocationswithin controlling (allocation of machine hourly rates in production orassessment of overhead costs). While these costs are not offset by externalconsumption in the profit and loss statement from a business perspective,they can be transferred using real-time COFI integration to the newgeneral ledger and therefore to Profit Center Accounting.

Figure 32: Derivation of a Segment

The U.S. GAAP and IFRS accounting principles require segment reporting. Youcan define segments in your SAP system for this purpose. The correspondingIMG activity is located in Customizing under Enterprise Structure Definition Financial Accounting Define Segment. You can enter a segment in themaster record of a profit center. The segment characteristic is only derivedtogether with the profit center characteristic. If no segment is entered manuallyduring posting (only possible in Financial Accounting transactions), the segmentis determined from the master record of the profit center. In turn, this profit centercan have a manual account assignment or can be derived itself. If you want to usedifferent rules to derive the segment during posting, you can define your own.


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These settings are located in Customizing under Financial Accounting (New)Financial Accounting Global Settings (New) Tools Customer Enhancements Business Add-Ins (BAdIs) Segment Derivation. The document splittingprocedure is a prerequisite, and is also useful for creating financial statementsand profit and loss statements for the segment dimension at any time. To enablethis, you have to allow zero balances for the segment characteristic. U.S. GAAPrequires nearly complete financial statements at segment level for reporting(basically everything but equity capital). In this approach, the segment is definedas an area of a company whose activities result in expenses and revenues. Itsoperating result is reviewed regularly by company and group management toassess its success and allocate resources, and is made available for the separatefinancial information. The IFRS segmentation requirements are nearly identical.The segment dimension is provided to map the segment level.

You can use an ERP system to create a segment in the master data of a profitcenter. When you make a posting on the profit center, the segment is also posted.There is no dummy segment posting, unlike the profit center logic - if the profitcenter has no segments, then no segment assignment takes place. Deriving thesegment from the profit center is the standard method. You can also use a BAdIcalled FAGL_DERIVE_SEGMENT to derive the segment.

Figure 33: Derivation of a Segment (2)

The segment is derived from the profit center characteristic because thischaracteristic already exists in various SAP objects, which means the segmentcharacteristic can be derived from it automatically.For more information, see SAP Note 1035140: Officially, SAP only authorizesthe use of segments if profit centers are used at the same time. The automaticderivation of segments is only possible with profit centers. Many business


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transactions, particularly in logistics, do not have an option for entering thesegment manually. Moreover, several standard interfaces do not support thesegment. For these reasons, the use of segments is only approved if you also useprofit centers. If it is not possible to derive the segment characteristic from aprofit center master record, you have to find a different way of assigning thesegment accounts. Options include manual entry, BAdI implementation (=>BAdI: FAGL_DERIVE_SEGMENT), defining substitution rules, and a standardaccount assignment (which usually involves document splitting). In additionto BAdI FAGL_DERIVE_SEGMENT, BAdI FAGL_DERIVE_PSEGMENT isavailable for deriving the partner segment.

Figure 34: Statistical Key Figures

Statistical key figures are values or quantities (for example, number of phonecalls, sq. m. area, number of employees) that give further details on the setup,the consumption or performance output of cost centers, internal orders, processesor profit centers.

You can post statistical key figures both in the plan and in the actual.

You can use statistical key figures both as an allocation base for periodicdistributions or assessments and to create key figures (ratios such as personnelcosts per employee).


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You can define statistical key figures as either fixed values or totals (transactioncode KK01), which means they are also available in the new general ledger.

The fixed value is carried over from the period in which it is posted to allsubsequent periods of the same fiscal year. You only have to enter a newposting when the value changes. Fixed values are defined when key figuresremain constant over a significant period of time (such as the number ofemployees in a cost center).

The totals value is not transferred to the following period but must be enteredfor each individual period and is preferable for statistical key figures whosevalues fluctuate in individual periods (such as power consumption in kWh).

Statistical key figures can be transferred from the Logistics Information System bylinking a key figure from LIS (such as order receipts) to a statistical key figure(such as in Cost Center Accounting).

Figure 35: Master Data Groups

Profit center groups are alternative hierarchies to the standard hierarchy. You canuse them in reporting, distribution and assessment, or various planning functions.In contrast to the standard hierarchy, these profit center groups do not have tocontain all the profit centers in the controlling area. On the contrary, profit centergroups let you select only certain profit centers and structure them hierarchicallyto allow you more flexibility.

You can use the financial statement/profit and loss statement structure in the infosystem to display the report structures from Financial Accounting in profit centerreports.

You can create profit center groups in the following areas in the system:In the application menu: Accounting Financial Accounting General Ledger Master Records Profit Center Profit Center Group CreateIn Customizing: Financial Accounting (New), General Ledger Accounting (New),Master Data, Profit Center, Define Profit Center Groups


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The transactions used for maintaining the cost element groups (such as KAH1)used in controlling are located under the following Customizing menu path:Financial Accounting (New) General Ledger Accounting (New) MasterData G/L Accounts Create Cost Element Groups


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Exercise 2: Master Data

Exercise ObjectivesAfter completing this exercise, you will be able to: Create profit center master data Explain the difference between a dummy profit center and a default profit

center

Business ExampleYour company wants to set up product-oriented profit center accounting, toallocate revenue responsibility to the respective company units.

To do so, they set up one profit center for production and one for the productdivision area. The first test is to be performed with a new division forhigh-capacity pumps.

Task 1:Create the following profit center master data in the standard hierarchy, H1.Navigate to the following node: H1 HE H9500 AC612.

1. Create the following profit center master data:

ProfitCen-ter

AnalysisPeriod

Name Long text PersonRespons.

Seg-ment

611## 01/01/cur.FY to12/31/9999

Pumps Pumpdivision

AndyAdmin

MANF

612## 01/01/cur.FY to12/31/9999

PumpProduction

PumpProduc-tion Divi-sion

PaulPump

MANF



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2. Which activation status do these profit centers currently have and what arethe consequences?

3. Activate the profit centers you created.

4. On the Company Codes tab, check whether your profit centers are assignedto company code 1000.

5. Why does the test system have a dummy profit center?

Task 2:You also need profit center groups for the information system.

1. Create the profit center group GROUP## with the description Group ##Profit Center outside the standard hierarchy. Assign the following profitcenters:

Profit Center Group Assigned Profit CentersGROUP## Group ## Profit Centers 611## Pump Division

612## Pump Production


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Solution 2: Master DataTask 1:Create the following profit center master data in the standard hierarchy, H1.Navigate to the following node: H1 HE H9500 AC612.

1. Create the following profit center master data:

ProfitCen-ter

AnalysisPeriod

Name Long text PersonRespons.

Seg-ment

611## 01/01/cur.FY to12/31/9999

Pumps Pumpdivision

AndyAdmin

MANF

612## 01/01/cur.FY to12/31/9999

PumpProduction

PumpProduc-tion Divi-sion

PaulPump

MANF

a) On the SAP Easy Access screen, choose: Accounting FinancialAccounting General Ledger Master Records Profit CenterStandard Hierarchy Change

Navigate to the following node in the standard hierarchy:H1 HE H9500 AC612

Double-click node AC612 and then chooseEdit Create Profit Center

Enter the data for the new profit center in the profit center table.

2. Which activation status do these profit centers currently have and what arethe consequences?

Answer: The profit centers are inactive. They can neither be assigned toaccount assignment objects nor be posted to.

3. Activate the profit centers you created.

Answer: Choose Edit Activate. The Standard Hierarchy for ProfitCenters: Change screen appears. Set the flag next to profit centers 611##and 612## and activate them. Then save the changes you made to thestandard hierarchy.



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4. On the Company Codes tab, check whether your profit centers are assignedto company code 1000.

Answer: Choose the Company Codes tab. Make sure that the indicator is setfor company code 1000 in the Assigned column.

5. Why does the test system have a dummy profit center?

a) The classic Profit Center Accounting (EC-PCA) is still active fortesting purposes in the test system. All nonassigned postings in theprofit and loss statement are posted to this profit center in EC-PCA. Inthe new general ledger, the profit center is inherited as a result of thedocument split for nonassigned document lines.

Task 2:You also need profit center groups for the information system.

1. Create the profit center group GROUP## with the description Group ##Profit Center outside the standard hierarchy. Assign the following profitcenters:

Profit Center Group Assigned Profit CentersGROUP## Group ## Profit Centers 611## Pump Division

612## Pump Production

a) On the SAP Easy Access screen, choose: Accounting FinancialAccounting General Ledger Master Records Profit CenterProfit Center Group Create

Name the profit center group GROUP##. Enter Group ## ProfitCenters as the name.

Click the top node, GROUP##.

Choose Edit Profit Center Insert Profit Center. On the inputscreen that appears, enter profit centers 611## and 612## on separatelines.

Then save the profit center group GROUP##.


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Lesson Summary

You should now be able to: Create the standard hierarchy Maintain profit center master data


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Lesson: Profit Center Assignments

Lesson OverviewYou assign profit centers to the account assignment objects in the SAP system toensure that all the data is transferred.


Assign profit center master data to the account assignment objects in SAPERP

Business ExampleYour project team wants to understand how the profit center account assignmentsare derived for various account assignment objects in SAP ERP. You need to findout this information to prepare the project meeting.

Figure 36: Profit Center Assignments

You assign profit centers to all account assignment objects to which costs andrevenues have been posted. These assignments also determine the transfer ofbalance sheet items to the individual profit centers.

As a result of the assignment logic, the profit center is normally not posted toexplicitly. Instead, data is derived from primary account assignment objects (costcenters, internal orders).


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AC612 Lesson: Profit Center Assignments

Generally, postings of costs and revenues to Profit Center Accounting are basedon the assignment of sales orders/production orders and cost objects. Overheadcosts are based on the assignment of the account assignment objects in OverheadManagement (cost centers, internal orders, and so on) to profit centers.

To maintain profit center assignments, use the following menu paths:

On the SAP Easy Access screen, choose: Accounting FinancialAccounting General Ledger Master Records Profit CenterCurrent Settings

In Customizing: Financial Accounting (New) General Ledger Accounting(New) Master Data Profit Center Assignments of AccountAssignment Objects to Profit Centers

Figure 37: Assignment of Controlling Objects

You assign Overhead Cost Controlling objects (cost centers, internal orders,projects, business processes) to profit centers to observe the value flow betweenFinancial Accounting and Overhead Cost Controlling from a profit center pointof view.

When you assign a controlling object to a profit center, the system makes sure thatthe controlling area is the same for the object and the profit center. Cost centersand business processes are assigned to a profit center in the Master Record BasicData screen.

The validity period of the profit center must completely contain the dates of thecost center or business process.


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Additionally, the assignment of a cost center or internal order to a profit centeralso implicitly assigns all assets assigned to this cost center or internal order tothe profit center as well.

You link internal orders to a profit center in the Order Master Data Assignmentsscreen. Maintenance orders from the Plant Maintenance component are assignedto a profit center in the same way as internal orders.

Cost objects are used in Product Cost Accounting to collect and store costs thatcannot be assigned to objects at a lower level (orders, projects, or cost centers).However, in certain circumstances, you may need to assign a cost object to a profitcenter. The assignment logic used here is the same as that used for assigningcost centers.

Unlike other assignment objects, profitability segments do not have masterrecords. A profitability segment is a combination of characteristics, such as acustomer, product, plant, distribution channel, and so on. The profit center isalways one of the characteristics.

Figure 38: Assigning Projects

Projects are generally used to carry out complex, long-term tasks. This makes itpossible for several profit centers to be involved in a single project, for example,constructing a ship. One profit center might be responsible for producing theengine, while another would be responsible for the internal fittings. Profit centersare therefore assigned to the various data-bearing structures in the project ratherthan to the project definition itself. These structures are:

Work breakdown structure element (WBS element) Network header Network operation


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In the project definition or the project profile, you can enter a profit center thatis to be used as the default for the individual WBS elements. You can overwritethis value in the individual structures. If a WBS element is not assigned to a profitcenter, the system posts to the dummy profit center.

If a network header is not assigned to a profit center, the profit center is derivedfrom the corresponding WBS element.

If a network activity is not assigned to a profit center, the profit center is derivedfrom the corresponding WBS element, provided that the activity is linked to aWBS element. Otherwise the profit center is taken from the network header.

The assignment of these structures to a profit center makes it possible for youtransfer work in process from projects to Profit Center Accounting, as well asseeing all costs and revenues in the derived profit centers.

Figure 39: Assigning Materials

The assignment of the material masters to profit centers is the basis for theassignment of sales and production orders. Furthermore, it forms the foundationfor internal goods movement transactions and for the transfer of material stocksto Profit Center Accounting.


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Materials are always assigned to a profit center at plant level. The exampleillustrates some of the options this approach provides:

A profit center that represents a material in all plants (Profit Center I) A profit center that represents a plant, including all materials for the plant

(Profit Center II) A profit center that represents a specific material for a specific plant (Profit

Center III)

The plant is assigned to a company code, which is in turn assigned to a controllingarea. This controlling area must be the same as the controlling area to which theprofit center belongs.

You can assign materials directly in the material master or use the fast assignmentfunction.

Material maintenance is divided into several views. If you have selected theSales: General/Plant Data view, you enter the profit center in the General plantparameters in this view. If this view is not relevant for this material (for example,with raw materials), you maintain the profit center in the Storage 2 view, also inthe General plant parameters. However, the same profit center is always shownin the different views.

Figure 40: Assigning Production and Sales Orders

A production order contains an assignment to a profit center in the order masterrecord. For PP production orders or process orders, you can find the Profit Centerfield under Header Assignment. For CO production orders, it is located on theinitial screen.


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When you create a production order, the default profit center is taken from themaster record (general plant parameters) of the material being produced. Forprocess orders, the system proposes the profit center for the main product in theorder. Consequently, you do not normally have to enter the profit center manually.

All the primary and secondary costs posted to the production order are passed onto the assigned profit center, along with the credit posted when the productionorder is delivered or settled. This assignment is also used for transferring work inprocess to Profit Center Accounting.

Production orders are carried out in a plant. Each plant is assigned to a companycode, which in turn belongs to a controlling area. This controlling area and thecontrolling area of the profit center must be the same.

Every order item in a sales order is assigned to a profit center. To find the profitcenter field, choose menu path Edit Item Account Assignment. The profitcenter for the material to be sold is proposed by default. Therefore, you do notnormally have to enter the profit center manually.

Figure 41: Assignment By Means of Substitution

In the sales order, the profit center from the material master for the item to be soldis proposed by default. This default proposal allows a product-oriented divisionby profit centers (via the material) and a location-oriented division (via the plant),or a combination of both.

If you wish to structure your company from a sales-oriented rather than aproduction-oriented view, you can also determine a profit center from the availablefields in the sales order header or item with the help of substitution rules.


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The following is a partial list of the fields from the sales order and relatedinformation that can be used to derive the profit center assignment:

Business area Customer Customer group Customer groups 1-5 Distribution channel Category Material Material group Material groups 1-5 Material price group Order reason Plant Product hierarchy Sales district Sales group Sales office Sales organization Storage location

If the system finds a valid substitution for a sales order, it uses this instead of thedefault found using the assignment on the material master record.


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Figure 42: Assignment Monitor

The assignment monitor provides you with an overview of all the assignmentsyou have made to profit centers and supports you when you make or changeassignments. For example, you can call up a list of all cost centers that have notbeen assigned to a profit center or profit center group, or a list of cost centers thatare assigned to a particular profit center or profit center group. From here, you canjump directly to the transaction for changing the object.

The fast entry screen in theMaterial menu enables you to assign a large number ofmaterial numbers to a profit center quickly.

The Orders menu lets you analyze the following types of order: internal orders(CO), imputed cost orders (CO), CO production orders, PP producti

ac612 profit center accounting in new

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