cancel
Showing results for 
Search instead for 
Did you mean: 

Need of Profit centre in Material Master

Former Member
0 Kudos

Hello Experts,

As of now we have not entered profit centre in material master.

Is it necessary to maintain the profit centre in material for any scenario?

If yes can you please explain me those scenarios.

Thanks in Advance,

Satya

Accepted Solutions (1)

Accepted Solutions (1)

former_member309133
Active Contributor
0 Kudos

Hello

If you want the expense postings to happen to profit centers then you need to enter the profit center in the cost center. This will help you in getting a P & L for each profit center.

Sangram

Former Member
0 Kudos

Hello Sangram,

Thanks for the reply...

Can you please clarify me that there is one field lProfit Centre under Costing1 tab of the material master.

Is it neccesary to give the profit centre there in that field.

If yes, can you please let me know the reason for that. i mean the exact functionality of the profit centre in material master.

Correct me if am asking anything wrong..

Thanks

Satya

venkatasatyakrishna_achan
Active Contributor
0 Kudos

hi

yes u need to enter, it will be helpful for profit center reporting, when u post consumption of any material as these account are automatically picked, u can not enter any profit center like wise u enter in manual jv posting. the consumption of this material will be updated to profit center

krishn

Former Member
0 Kudos

Hello Krishna,

You mean to say that, the profit centre field is neccesary for material master, and it is only for reporting purpose???

Thanks,

Satya

venkatasatyakrishna_achan
Active Contributor
0 Kudos

hi

yes exactly.

Former Member
0 Kudos

Hi,

I think through the activity types all the exp/revenues whatever it is will be updated to the costcentre,

and we will link the cost centre with profit centre then automatically the data will flow from cost centre to profit centre.

then why we need to maintain again here??

Please correct me if am wrong.

Thanks,

Satya

venkatasatyakrishna_achan
Active Contributor
0 Kudos

hi

through activity types, it will update only direct overheads. but materials are consumed through primary cost elements where as activities is through secondary cost elements.

krishna

Former Member
0 Kudos

Thank you Krishna

Answers (1)

Answers (1)

Former Member
0 Kudos

thanks all