Below are the steps to make postings to profit center.
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Assigning cost centers to profit center in an organization to reflect all the primary costs from Financial Accounting and all secondary allocations to profit centers in Cost Center Accounting. Assigning a cost center to profit center, it assigns all the cost center assets to the profit center.
Profitability Analysis (CO-PA) allows to evaluate market segments or sales organizations or business areas, etc. Market Segments can be classified according to products, customers, orders or any combination of these.
Cost center planning involves entering plan figures for costs, activities, prices or statistical key figures for a cost center and a planning period. Cost center planning forms part of the overall business planning process and is required for standard costing.
Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system. The data flow between the above two components takes place on a regular basis. The data flows automatically to Controlling from Financial Accounting.
Secondary cost elements are used exclusively in Controlling (CO) and have no relationship with general ledger accounts of Financial Accounting (FI). Secondary cost element created in controlling (CO) module and used for internal allocation purpose. A Secondary cost element cannot be directly posted.
Assessment Cost Elements are the secondary cost element created to use in the assessment cycle. These cost elements should create under the cost element category 42. The assessment cycle distributes the expenses from one cost center to other.
An internal order monitors the costs parts under certain circumstances, the revenues of the organization.
An internal order is used as an interim collector of costs and an assistance to the planning, monitoring and controlling processes needed. The costs can be settle to one or more receivers like cost center, fixed asset, profitability segment, etc, when the job has been completed.
Profit Center Group contains set of profit centers that are having similar characteristics. Profit center accounting is an organizational unit which reflects organization management-oriented structure for internal control. Profit Center Accounting evaluates the individual, independent areas profit or loss of within an organization.