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How many profit centers are needed to run your business?

simon_broome
Explorer
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599

Hi

I am interested in knowing how many profit centers you have set up within your organisation and what drives the decision to create a profit center over a cost center or internal order for reporting?

Looking in table CEPC for one controlling area we have 5,529 profit centers. For an organisation with around 8,000 members of staff is this reasonable?

Thanks for sharing your experiences.

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simon_broome
Explorer
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I have just found OSS note 217338 which gives the following bands

Less than 1000 profit centers (normal)

1000 - 5000 profit centers (large installation)

5000 - 10000 profit centers (very large installation)

More than 10000 profit centers (extremely large installation)

This does seem to follow my suspicion, we have more profit centers than would be expected for our size.

Still interested to hear others experiences though.

Former Member
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Hello Simon

This is a not uncommon practice. SAP gives an opportunity for business to define and follow the best practices. You may discuss with the business and try to reduce the number of pc and have meaningful pc on a scientific basis.

Regards

saramaswamy