PROFIT CENTER BALANCING

[Former Member]

Hi,

Our profit centers are defined as balancing entities,and we are to generate trial balance and other financial statements per profit center.

Whenever a transaction that debits PC a and credits PC b is done neither profit center A nor B would balance because both PCs contain a single leg of the complete transaction thereby creating unbalanced trial balance for each profit center.

Is there a standard way by which sap handles such balancing entities ? and how can i go about it ?

Regards

[Former Member]

Hi

In the scenario you have mentioned you can use PROFIT CENTER Clearing A/c concept. As and when two or more different profit centers are derived system will automatically post internally to PROFIT CENTER Clearing A/c. Let us take that you are passing the following entry.

Courier Charges A/c Dr 1000 101009

Rent A/c Dr 2000 101015

Payable A/c Cr 3000 101015

Since two different profit centers are getting you cannot draw TB for 101009 or 101015.

In this scenario system pass entry like this.

Courier Charges A/c Dr 1000 101009

Rent A/c Dr 2000 101015

Payable A/c Cr 3000 101015

PRCTR Clrg A/c Cr 1000 101009

PRCTR Clrg A/c Dr 1000 101015

Now the balance is zero at 101015 and 101009. this PRCTR clrg a/c is zero at company code level. Like this you can draw TB at any given point of time online by using PRCTR clrg a/c.

Hope this clarify your doubt.

All the best

Regards

Brahmam