SAP CCA Profit Center - SAP CCA

What is profit center in SAP CCA?

SAP CCA-Profit center is created for managing internal controlling. Profit center delegates responsibilities to the decentralized units and allows you to treat those as separate companies in a company. Profit center help you to calculate key figures in cost accounting like- ROI, Cash flow, etc.
Profit Center is considered as a part of Enterprise Controlling module and is integrated with new General Ledger Accounting.

Key Features of SAP CCA Profit Center

  • Profit Center Accounting is used to determine profit for internal areas of responsibility.
  • It lets you determine profits and losses using either period accounting or the costof-sales approach.
  • It allows you to analyze fixed assets by profit center, thus using them as investment centers. This makes it possible to expand profit centers to investment centers.

Why do we create Profit Center?

The reason behind creating a profit center is to analyze the cost of a product line or a business unit.
You can also generate profit and loss accounts according to Profit Center and also generate balance sheets however Profit center should only be used for internal reporting purposes.
The major parts of a profile center includes- name of the profit center, the controlling area under which it is assigned, time period, person responsible for the profit center, standard hierarchy, etc.
To create a Profit Center, follow the steps given below −
Step 1 − Use T-code: KE51 or go to Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center → Individual Processing → Create.
create
Step 2 – Now ,enter the controlling area in which profit center is to be created and click the tick mark icon.
profit_center
Step 3 − In the next screen, enter the unique profit center ID and click Master Data.
profit_center_id
Step 4 − A new window will open, enter the following details.
  • Profit center name and short description of the profit center.
  • Person responsible for the profit center.
  • Profit center group for which the profit center belongs.
create_profit_center
Step 5 − Click the save icon at the top to create the profit center in inactive mode. To activate the profit center, click the icon as shown below.
click_icon

Create Profit Center Group

To create Profit Center Group −
Step 1 − Use T-code: KCH1 or go to Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center Group → Create.
profit_center_group
Step 2 − Enter the Controlling Area in which the profit center is to be created.
profit_center_created
Step 3 − Enter the Unique Profit Center Group Id as shown below and press Enter.
unique_profit_center
Step 4 − Enter the short description for the profit center group and click the save icon at the top.
saved

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