please can any body tell me why we assign profit center in the cost center master data.
wt is the link b/w cost center and profit center?
how the data will update in the profit center through costcenter.Mycompany not using profit center accounting but still profit center assigned to costcenter
thanq for ur help
Profit Centers are used to teh profit( Revenue-Expences) of a particular Profit center.
Rvenues are posted to profit center via Salers order. Every Sales Oreder contains what is teh material & quantity.
In Materail master costing view we will assign the profit center. based o this sysytem will take teh profit center for the materail.
But Costs are posted only to Cost objects( cost center, intrenal order, wbs etc.).
if you want to know teh profit of a cost center you want both cost & revecnue righjt?
I already explianed how to post revenues to profit center.
Cost ( expences) we are not posted directly to a Profit center. But we will give the Profit center in the Cost object( cost center, internal order, wbs elemnt etc),.
Based on this what ever cost you are posted to cost center transferd to profit center also( based on teh profit center which is maintained in teh cost center master.)
Profit center posting are statistical posting i.e when you post FI document and assign cost center then this becomes a real posting and if any profit center is assigned to cost center then it will post to that profit center as statistical posting.
therefore while posting we can't use profit center directly in orginal posting, it should derive thru cost center,material master or substitution etc,
if profit center is not active then there is no need to assign profit center in cost center its not mandatory.
In your case they might have created profit centers for future purpose.
Hope u got it.