How to create Profit Center master and Group in SAP

How to create Profit Center Master and Group in SAPProfit center is an organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control.

Example

In a company we have different plants and each plants are responsible for there product produced or the services they render. If you want your company to be divided into different responsibility area based on plants then each such plant has to be created as a profit center. At the end of the month or year you can derive profit and loss account in PCA and balance sheet as on that date.

Dividing your company in to profit centers allows you to analyze areas of responsibility and delegate responsibility to decentralized units, thus treating them as “companies within the company”.

It can be created with reference to an existing master data. The reference master data can be from the same controlling area or a different controlling area. To copy a profit center put the name of reference profit center and controlling area under the tab “copy from”

How to create or change or display or delete Profit Center

You can create it by using transaction code KE51 or by using following path;

SAP menu > Accounting > Financial Accounting > General Ledger > Master Records > Profit Center > Individual Processing > KE51 – Create

You need to set the controlling area first before creation of PC master data. If sap has selected the right controlling area then go ahead and enter your master data details. Other wise set your controlling area before entering the details.

To reset your controlling area use transaction code OKKS. While creating it you need to make sure that it is assigned to the right company code and PCA group.

To allow posting to a profit center you need to activate it by pressing the Activate button available on the top of the creation screen.

It can be changed by using transaction code KE52 or path;

SAP menu> Accounting > Financial Accounting > General Ledger > Master Records > Profit Center > Individual Processing > Change

You can display it by using transaction code KE53 or path;

SAP menu> Accounting > Financial Accounting > General Ledger > Master Records > Profit Center > Individual Processing > Display

It can be deleted if there are no dependent data available. If you have any transactional data posted then it can not be deleted. To delete it use transaction code KE54 or path;

SAP menu> Accounting > Financial Accounting > General Ledger > Master Records > Profit Center > Individual Processing > Delete

Display Changes to PCA Master Data

You can display all the changes that are taken place to it by using transaction code 6KEA or path;

SAP menu> Accounting > Financial Accounting > General Ledger > Master Records > Profit Center > Individual Processing > Display Changes

How to create profit center from the maintenance screen of PCA standard hierarchy creation

PCA standard hierarchy is a tree structure that contains the entire profit center and groups used under one controlling area. You can understand the organizational structure by having a look on the PCA standard hierarchy.

You can create the master data by using the transaction code KCH5N or path;

SAP easy access menu > Accounting > Controlling > PCA > Master Data > Standard Hierarchy > KCH5N – Change

If you have more than one to be created under PCA group then this is the best way to create it.

To create it you need to click on the create option and click on profit center by having your cursor on the a group under which you want to create it. Save it once you are finished with it.

You can activate or change the master data form here.

How to create PCA group for reporting

You may have requirements to create groups based on your organisational structure which are not fulfilled by PCA standard hierarchy. For example you want to group all the profit centers related to a company code for reporting purpose. Now in standard hierarchy you have created your entire profit center for different company codes assigned to controlling area (profit centers are created under controlling area). This assignment does not give you your desired result. For this reason you create PCA group for your company code by using transaction code KCH1 or path;

SAP easy access menu > Accounting > Controlling > PCA > Master Data > Profit Center Group > KCH1 – Create

Enter a name and press enter or shift+f5. You can also create PCA group with reference to another PCA group by entering the other group and its controlling area.

Steps to create a PCA group

  • Write a small description to your group
  • By using “same level” button you can assign group at the equal level of another group.
  • By using “lower level” button you assign groups to the lowest level of another group (i.e. below a PCA group). These groups are called sub group.
  • Having selected a PCA group or sub group click on “profit center” tab to get assigned the profit center masters. After clicking on the tab you have option to fill out the field.

Save it

You can use transaction code KCH2, KCH3 to change and display a group.

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