SAP Profit Center – Introduction
SAP Profit Center is a management-oriented organizational unit used for internal
controlling purposes. Segmenting a company into profit centers, allows us to analyze
responsibility and delegate responsibility to decentralized units.
Likewise, it lets you set up our profit centers according to product (product lines,
divisions) geographical areas (regions, offices or production sites) or function
(production, sales). Furthermore, it also lets you calculate internal operating results
for the profit centers.
PC as an Organizational Sub-Unit
It represents an organizational sub-unit that operates independently on the market
and bears responsibility for its costs and revenues.
You can properly organize your organization into profit centers by assigning
the Master Data of each profit relevant object to the profit center. This includes-
Materials
Cost Centers
Orders
Projects
Sales Orders Assets
Cost Objects
PC For Business Transactions
All the business transactions in the S4 HANA system which are relevant for cost and
profits are updated in the PCs at the same time they are processed in the original
module and organized according to cost elements as well as revenue elements. This
transforms all the flows of goods and services within the company into exchanges of
goods and services between profit centers. This profit center structure applies to
both actual postings and profit center data.
PC as an Investment Center
It is also possible to treat a PC as an investment center. In addition to the flows of
goods and services, you can transfer selected balance sheet line items to profit
centers periodically. These include:-
Fixed Assets
Payables
Receivables
Material stocks
Work in process (WIP)
& more
Assigning SAP Profit Center to Cost object
Follow the below path for assigning PC to cost objects in the SAP Finance S/4HANA
application.
SAP Easy Access => Accounting => Financial Accounting => General
Ledger => Master Records => Profit Center => Current Settings
Profit Center Table in SAP
It is the place where the relevant data is stored in RDBMS.
(RDBMS – Relational Database Management System. It is a storage place that
keeps data of everything related to SAP applications).
Below is the table with the description of each element.
Profit Center Table Explanation
CEPC Profit Center Master Data Table
CEPCT Texts for Profit Center Master Data
CEPC_BUKRS Assignment of Profit Center to a Company Code
GLPCA EC-PCA – Actual Line Items
GLPCO EC-PCA – Object Table for Account
Profit Center Table Explanation
GLPCP EC-PCA – Plan Line Items
How to Create Profit Center in S4 HANA
To create a Profit center in SAP S/4HANA, you need to follow the below steps. Refer
to the image for a better understanding.
SAP Easy Access => Accounting => Controlling => Profit Center => Master Data =>
Profit Center => Individual Processing => Create
The Tcode KE51 is used to create Profit Center Master data.
There is an alternate way also to create it in S/4HANA. Here it is-
SAP Menu => Accounting => Financial Accounting => General Ledger => Master
Records => Profit Centers => Individual Processing => Create
How to Change a Profit Center?
As shown in the image above, the path to modify is the same as it to create. Just
below the create option, you will find the option to change. The Tcode is- KE52.
SAP Profit Center Report
With the help of Profit center reports, you can see the revenue and expense reports
of a business unit. These are the reports that the system generates at various times
or periodically and save into the profit center reports segment.
This section further helps SAP users and consultants to get a quick view of all
revenue-expenditure data. These are mostly of use to SAP S/4HANA Finance
consultants as they are the ones who deal with the reports work commonly.
Profit Center Report Tcode in SAP – KE5Z.
Here is the directional path:-
SAP Easy Access => SAP Menu => Accounting => Controlling => PC accounting =>
Information System => Reports for PC Accounting => Line Item Reports => KE5Z –
Profit Center: Actual Line Items.
SAP Profit Center Hierarchy
It is the process of arranging PC Groups and PC Master Data. It is a part of
the Controlling Area.
The directional Path:-
SAP menu => Accounting => Financial Accounting => GL => Master Records => PC
=> Standard Hierarchy
SAP Profit Center Hierarchy Tcode – KCH1
Profit Center Actual Line Item in SAP
Whenever any transaction related to the profit center is posted into the system, it
generates profit center actual items. So we can get this report by using the Tcode
KE5Z.
Easy Access=> Accounting => Controlling => PC Accounting => Information System
– Reports for PC Accounting => Line Item Reports => KE5Z- Profit Center: Actual
Line Items
