Balance sheet item in Profit center accouting

[Former Member]

Dear All,

We are deriving segmental reporting through profit centers. I have created the profit and loss accounts as cost elements. Should I have to create the balance sheet items also as cost elements. In that case what should be the category for balance sheet items such as investment, asset, creditors, debtors and all other balance sheet items.

Regards

Vasantha

[Former Member]

Hi Vasantha

The idea of profit center accounting is to have balance sheets, profability within the company for products, regions etc. You can derive balance sheet for these other than the legal balance sheet.

Now coming to your point, as others rightly said when you create cost elements for p&l gl accounts, the costs flows to the profit centers from the cost centers.

Then the GL accounts, you dont need to create cost elements. The profit centers are derived from the offsetting expense gl account. The profit center are derived from various assignments.

Profit centers in the Material master - Vendors & Customers get the profit center from the profit center assigned in the MM Master of the material when you buy or sell.

Profit center for asset - Cost center is assigned in the asset master from which it derived the profit center. When you buy asset, depreciation etc., flows to profit center accounting.

Most of the transactions profit centers are derived from the profit center assigned in the cost center for all balance sheet accounts.

Now coming to the New GL or Old GL, profit center are transferred to the balance sheets accounts esperically for Debtors & Creditors at the period end in Old GL by running TCode 2KEK, now with the New GL Document Splitting, the profit center is assigned immediately in the transaction itself.

I hope it is clear how profit center accounting works.

Regards,

Suraj

[Former Member]

Hi,

Donot create the BS items as Cost elements. The basic purpose of creating a cost elemnt in FI is to map the expenses to CO using the cost elements.

Thanks

Aravind

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[Former Member]

you can only do this if you activate the new GL.

You should not create cost elements for BS accounts, apart from particular assets ones, which is a different story.

[Former Member]

Hi,

In that case is there any possiblity to transfer the creditors/debtors to the profit center accouting. It is the requirement for us to get the creditors and debtors based on profit centers.

Regards

Vasantha.

[Former Member]

please look at the new gl, what version of erp are you on?

[Former Member]

ECC 6.0

[Former Member]

Hi,

You can transfer balance sheet items periodically in Profit Center Accounting

Check the below doc:

http://help.sap.com/bestpractices/BBLibrary/Documentation/J08_BPP_04_EN_MY.doc

Thnaks

Aravind

<b>Assign points if helpful</b>

[Former Member]

OK you can configure document splitting to get what you want.

Check the forum for notes on "new GL" and document splitting, however I would recommend you use a SAP Partner to help you implement it.