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Product group wise profit center and common profit center

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I have a requirement from client, Product group wise profit center, which we have created, but now they are asking for plant/branch wise additional profit centers to book common/administrative costs. i am confused what is the best practice for this, should we go for:

01. product group wise profit center + place wise profit center for common cost booking.

02. product group wise profit center + 1 common profit center for common cost booking, and month end run assessment cycle to allocate common cost to product group wise profit centers.

Mention that we don't have COPA in scope.

Client want TB for head office, branch office, so they want the location wise profict center in addition of product group wise profit centers.

Please suggest how to solve this.



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Answers (1)

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Hi Raim,

Profit Center definition is based on business logic i.e either product line, locations, plants etc. However, you need to understand that at the time of the transaction you need to capture all the reporting dimensions only then your values will be rolled up like Product group-wise or location wise or plant wise.

You need to use other reporting dimensions like Business Area and Segment to fulfill your requirements.


Abhinav Malik