Profit Center Assignment in Customer/Supplier in SAP S/4HANA CLOUD PUBLIC EDITION

[prince_ebi]

Dear Experts,

We have a business requirement where one Supplier or Customer may be debited or credited directly, and the corresponding entry is posted to another Supplier or Customer.

Currently, the "Post General Journal Entries" app does not support the selection of Customer or Supplier accounts, which limits our ability to post these transactions directly through journal entries.

As a workaround, we are using the "Clear Incoming Payment" and "Clear Outgoing Payment" applications to perform these transactions. However, in these apps, we are unable to assign a Profit Center, which is essential for our internal reporting and profitability analysis.

We would appreciate your guidance on the following points

1. Is there any way to allow Customer and Supplier accounts to be posted together using a journal entry app?

2. How can we assign Profit Centers in these clearing scenarios, or is there an alternative recommended approach?

We look forward to your suggestions.

Regards,

Prince Ebi

[Jeremy_Deo]

Hello dear user,

And thank you for asking your question in the SAP Community blog.

To answer your first question, there is no proper application  to credit/debit customer or supplier in the G/L accounting.

The « Post General Journal Entries »  app currently does not support posting directly to Customer or Supplier subledger accounts. This is a limitation by design to separate G/L accounting from subledger postings.

However, if you want to post at the same time customer’s and supplier’s item in the same entry, you can either use the « Create Incoming Invoices » or « Create Outgoing Invoices » app and chosing the Complex posting option as shown below :

Regarding your second question, in SAP (including S/4HANA Cloud), you cannot manually enter a profit center on customer or supplier line items. These accounts are part of the subledger and aren’t considered cost-carrying, so the profit center field isn’t available for entry.

However, the profit center is usually assigned on the G/L line of the journal entry, either:

• Manually, if the field is open for input,
• Or automatically derived from a cost object like a cost center, internal order, or WBS element.

If your business needs the profit center for reporting, the best practice is to make sure the G/L line contains a cost object or rule that triggers the correct profit center.

I hope this will help find a solution to your problem.

Best regards,

Jeremy