SAP FICO-Profit center accounting

1. SAP FICO
GUSTAPH MUKETE,CIPM,MBA
gmukete@consultant.com

2. Lecture 11:Profit center
 Section of a company treated as a separate business
 Part of a corporation that directly adds to its profit
 Each controlling area can have several profit centers assigned to it, but each
profit center can only be assigned to one controlling area
 Profit Center Accounting helps in answering the following questions :
1. How much is the revenue?
2. How much is the cost of goods manufactured?
3. How much is the contribution margin?
4. How much is the administrative and sales costs?
5. How much is the operating profit?

3. Creation of Profit Center
 Enter T-code KE51

4. In the Proceeding screen , Enter the
controlling area in which the Profit Center
is to be created

5. In the next screen, Enter a unique
Id for the Profit Center

6.  In the next screen, Enter the Following
 Enter the name of the profit center
 Enter a short description of the profit center
 Enter the person responsible for the profit center
 Enter the profit center group for which the profit center belongs to.

7.  Press ‘Save’ button , for saving the profit center
from the SAP Standard Toolbar
 The Profit is saved in the inactive mode.

8. Press the ‘Activation’ Button for the activation of
the profit center from the menu Toolbar

9.  Finally Check the Status bar for the status of creation of
profit center.

10. Profit Center group
 A profit center group is a hierachical structure of
profit centers.
 You can use profit center groups to group profit
centers together according to company-specific
criteria.

11. Creation of Profit center group
 T-code KCH1

12. •Next,Enter the Controlling area in which
the profit center group is to be created and
enter the unique ID for the profit center

13. In the next screen, Enter a short description for
the Profit center group & save

14. Posting to profit center
 T-code FB50

15.  Enter Debit G/L Account
 Select Debit
 Enter Debit Amount
 Enter Credit G/L Account
 Select Credit
 Enter Credit Amount

16. 1.Select the Debit Line Item
2.Press Choose Detail button

17. In the next detail line item screen,
Enter the Profit Center & save

18. ANY QUESTIONS?
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