Profit center in Public Cloud

[ErikVH]

When adding a cost center in S/4hana public cloud, a profit center is mandatory. Coud someone tell why profit center is mandatory in cost center?

Our guess is that's because profit center accounting is active. If this is true how can we deactivate profit center accounting in sap s/4hana public cloud? 

[LilingJia]

Hi, Profit centers are organizational units that reflect a management-oriented view of the organization for the purposes of internal control. They allow you to analyze areas of responsibility and delegate responsibility to decentralized units, treating such units as "companies within the company." Profit center is the foundation for divisional accounting. I wondered why would you want to turn it off. If you could share what you expected and not expecting, we might could find other ways to achieve that. 'https://help.sap.com/docs/SAP_S4HANA_CLOUD/f0d042517a434458b171ff5867b18445/6baea0aebb1d4d54a1156f26... best regards, liling

[LilingJia]

Hi, Profit centers are organizational units that reflect a management-oriented view of the organization for the purposes of internal control. They allow you to analyze areas of responsibility and delegate responsibility to decentralized units, treating such units as "companies within the company." Profit center is the foundation for divisional accounting. I wondered why would you want to turn it off. If you could share what you expected and not expecting, we might could find other ways to achieve that. 'https://help.sap.com/docs/SAP_S4HANA_CLOUD/f0d042517a434458b171ff5867b18445/6baea0aebb1d4d54a1156f26... best regards, liling

[michael_davies]

Hi @ErikVH 

There is no ability to deactivate use of Profit Centers in S/4HANA Cloud Public. 

However you can minimize the maintenance by only defining a single PC and assigning to all records.

SAP recommends use of PCs to provide additional breakdown of Balance Sheet, for margin reporting and to provide a view across a range of cost object types such as Cost Centers, Projects and Orders.

regards

Mike