Balance Sheet Accounts in PCA

[Former Member]

Hi,

If I only activated PCA to capture the balance sheet accounts (Profit & Loss will be done strictly in COPA), can I left the field PC assigment in Cost Center Master Data to be empty?

Because the structure of the CC is in departement view, while the structure of PC is based on Product Hierarchy.

And I need to create the Balance Sheet Report based on the product hierarchy as in PC hierarchy.

Could any body advice me regarding the mater, like what is the implication if I left the PC assignment blank in CC master data.

Any help would be appreciated..

Thanks

Lea

[former_member188826 · Accepted solution]

If you do not assign any profit center to a cost center, anyhow the system would assign them to a default <b>Dummy Profit Center</b> which makes it more difficult to reconcile Cost Center Accounting and Financial Accounting. It is therefore recommended that you assign a profit center to each Cost center.

The following are some more analysis based on SAP documentation on concept and PCA assignments with reference to your dilemma of how to assign profit center to cost center which has been designed based on different characteristics namely product hierarchy versus function.

You have divided your company into profit centers according to product hierarchy.

This makes it difficult to assign cost centers that are divided by functions, to a profit center, which is divided by another attribute. i.e. product hierarchy. This can be apparent in a case, where, a production cost center may be performing activities relating to products which fall under multiple profit centers.

In these cases, you may want to assign these cost centers to one profit center (for example, "Production A"). If the cost center then performs activities for a production order, the system however credits the profit center "Production A" as well as the cost center at the time of settlement. You can then either settle the over-/under absorption from the cost center (for example, to a profitability segment) or allocate it directly to the corresponding product hierarchy in Profit Center Accounting.

It is often not possible to assign administration cost centers directly to a profit center. In this scenario, you can create profit center named <b>service profit center</b> or <b>allocation profit center.</b>. Then you may assign the admin cost center to the service profit center or allocation profit center. This profit center would then contain all the administrative costs which occur. At the end of the period, you can then either settle this over-/under absorption from the cost center (for example, to a profitability segment), with assignment to a service profit center.

To simplify you can ideally assess or distribute it directly in Profit Center Accounting, with the allocation profit center as the sender. In either case, the corresponding profit center is credited at the end of the period.

[Former Member]

Hello

Logically, you should not keep the assignment blank. How would your balance sheet tally, without taking revenues / costs / profit and loss/

Reg

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