A profit center (PC) is a sub-division within the organization responsible for its own revenues, expenses, assets and the ROI (return on investment). Profit centers can be considered as “companies with in the company”
It is a mystery to many how the profit center is determined in various postings. Without understanding this, it is not possible to define a sound SAP enterprise structure. For example, Company ABC wants to decide at what level the Profit Centers must be defined. The knowledge about the profit center determination will help you judge whether the decision taken is tenable or not
Here, we will discuss Profit center determination in various postings that happen natively in FI module or triggered from Logistics module i.e. MM, PP and SD modules.
At the end of the document, you will appreciate the (Crisp) logic used in SAP to determine the Profit center in various important scenarios.
Profit Center determination in native FI Postings: –
Profit Center determination in MM Postings: –
In the case of MM postings, the Profit center is first determined in the parent document, i.e., Purchase order, and it flows from there into subsequent postings.
Profit Center determination in PP Postings: –
In the case of PP postings, the Profit center is first determined in the parent document, i.e., Production order, and it flows from there into subsequent postings.
Profit Center determination in SD Postings: –
In the case of SD postings, the Profit center is first determined in the parent document, i.e., Sales order, and it flows from there into subsequent postings.
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