What Is a Profit Center in SAP S/4HANA?

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All profit centers in the client are assigned to a profit center hierarchy, and the profit center hierarchy is assigned to the controlling area ... Blog Books GetanoverviewofourwideselectionofbooksoneveryrelevantSAPtopic. Programming Admin&EIM BI&BW FICO&BPC Logistics HR CRM&Sales HANA Introductions E-Bites BookSubscription GetunlimitedaccesstoallSAPPRESSbooks! SAPPRESSSubscription FICO WhatIsaProfitCenterinSAPS/4HANA? bySAPPRESS on December13,2021 IntheSAPERPsystemwithclassicgeneralledgeraccounting,profitcenterswerepurelycontrollingobjectsandinaseparatesubmodule.ThisisnotthecaseinSAPS/4HANA.   WiththeintroductionofthenewgeneralledgerinSAPS/4HANAFinance,theprofitcenterbecamemoreimportantinfinancialaccountingbecauseit’stheobjectusedtoderiveandfulfilltherequirementsforsegmentreporting.Theprofitcenterwasdesignatedforthatrolebecauseit’sanaccountassignmentthatwasalreadyintegratedintomostothercomponentsofthesystem.   Thefigurebelowshowsanon-exhaustivelistofwaystheprofitcenterisderivedduringposting.Inaddition,afewoptionsfordirectassignmentofthesegmentarealsomentioned.Segmentsshouldalwaysbederivedbytheprofitcenter,buttherearealsoafewalternativeassignmentmethodspossible,especiallyforthefewcasesinwhichitmaynotbepossibletoderivetheprofitcenterautomatically.     Thefirststeptodefineprofitcentersistodesigntheirhierarchy.Allprofitcentersintheclientareassignedtoaprofitcenterhierarchy,andtheprofitcenterhierarchyisassignedtothecontrollingareainCustomizing,asshowninthenextfigure.Thismeansthatallcompanycodesassignedtothecontrollingareacanalsopotentiallyposttotheprofitcenter.     Inasecondstep,youassigntheprofitcenterstothehierarchy.Thehierarchycanbeflatorstructured.Structuringthehierarchyintogroupsandsubgroupsmakessenseforselectionduringreporting,planning,andsoon.Thisfigureshowsahierarchystructuredintogroups.     Whenyoucreateaprofitcenter,youselectthecontrollingareaandthenassignthecompanycodestheprofitcenterisvalidfor,asshownbelow.Youmustassigntheprofitcentertothehierarchybyindicatingtheprofitcentergroupitbelongsto.Youalsomaintaintherelevantsegmenttobederivedfromtheprofitcenter.     Whenyou’redoneenteringthedata,youactivatetheprofitcenterandcanthenenteritduringpostingandassignittootherobjects.   Editor’snote:ThisposthasbeenadaptedfromasectionofthebookSAPS/4HANAFinancialAccountingCertificationGuide:ApplicationAssociateExambyStefanosPougkas. Recommendation ProfitCenterAccountingwithSAPS/4HANA HowdoesprofitcenteraccountingworkinSAPS/4HANA—andhowdoyouuseit?WiththisE-Bite,getstep-by-stepinstructionsforrunningprofitcenteraccountingalongsideadetailedlookathoweachstepfitsintothegreaterfinancialpicture.Findinsightintoallyourcriticalprocesses:planning,actualpostings,transferpricing,reporting,andmore.MasteryourdailyPCAtasks! LearnMore bySAPPRESS SAPPRESSistheworld'sleadingSAPpublisher,withbooksonABAP,SAPS/4HANA,SAPCX,intelligenttechnologies,SAPBusinessTechnologyPlatform,andmore! FICO WhatIs? Comments LatestBlogs FICO WhatIsanSAPS/4HANAFinanceLedger? ReadMore FICO WhatIsSubscriptionFinancingandAccountingwithSAPS/4HANA? ReadMore Subscribetoourblog!Getnotifiedaboutfutureblogupdates. TheofficialSAPPRESSBlog Astheworld’sleadingSAPpublisher,SAPPRESS’goalistocreateresourcesthatwillhelpyouaccelerateyourSAPjourney.TheSAPPRESSBlogisdesignedtoprovidehelpful,actionableinformationonavarietyofSAPtopics,fromSAPERPtoSAPS/4HANA.ExploreABAP,FICO,SAPHANA,andmore! SAPBlogTopics AllSAPTopics Logistics Programming FICO Administration BusinessIntelligence CRM&Sales WhatIs? SAPHANA HumanResources BehindtheScenes Blogcuratedby VisittheSAPPRESSStore About Home AboutUs Contact LegalNotes PrivacyPolicy TermsofUse GuestPosting ©2022RheinwerkPublishing,Inc.|ChangePrivacyOptions

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