Is there anyway we can stop assigning inactive/blocked profit centers to a material? System is not displaying any hard error if we try to assigning a inactive/unblocked profit center to a material.
Why do we assign a profit center to a cost center or sales order or any cost object? Through this assignment any costs or revenues which are posted to WBSu2019s, as an example, are also automatically posted (statistical) to profit centers..
If we want to track the costs or revenues of any product or product line then we need to maintain the PCA. PCA reporting gives an opportunity to analyze the costs and revenues of that particular product otherwise how can we know whether we are making any profit or not on that particular product?
Let me try to give an example. I want to find out whether I am making any profit or not on the new product I introduced (Ex: new engine). To find out this, we want to define a production profit center and this profit center will be assigned to all the production materials which are associated with the engine materials. When we create a production order, then this production profit center will be assigned to a production order automatically. We can find out the COGM details from production order.
When we create the sales order, the sales order gets the profit center assignment automatically (standard way) and it happens through MM. Once the sales order is completed then we will know the revenue we will be getting. Now the profit center has all the postings like costs and revenue, and based on these details we can analyze whether this product is profitable or not.
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