Below are the steps to make postings to profit center.
Category Archives: SAP CO
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.
Assigning material to profit center provides with default values for sales order and manufacturing orders. The material assignment is applicable for one plant or assign materials by changing material master record directly in the system.
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.
A business unit in any company can be classified as profit center, cost center or an investment center. Cost center is a simple and straightforward division in an organization.
Cost center hierarchy consists groups of cost centers in a tree structure within a controlling area. Cost center hierarchy plays vey import role in SAP Controlling Area.
Below process is to discuss the cost center posting –
The Cost Center category is an indicator in the cost center master data which specifies the category for the cost center. Cost Center categories provide the ability to safe guard the postings to cost centers.