Profit center hierarchy in a controlling area contains all the profit centers in it. To create/change the hierarchy structure, it can be done in Profit Center Accounting or Customizing for Profit Center Accounting.
Creating Profit Center Hierarchy –
Step-1: Go to transaction KCH1.
(OR)
Go to Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center Group → Create.
Step-2: Select the Controlling Area and click on tick mark to proceed.
Step-3: Enter Profit Center Group name and press Hierarchy button.
Step-4: Enter the Short Description for the profit center group and click on Lower Level button to add next level profit center group.
Step-5: To add Profit Centers, click on Profit Center button.
Step-6: Enter the Profit Centers and click on Save button.
