Dummy cost center, Dummy profit center

[Former Member]

Hi everybody,

anyone tell me, why is necessary to use dummy cost center and profit center ? what does dummy cost center, profit center mean?

I don't clear about dummy cost center and profit center

Thank in advance

Minhtb

Edited by: Tran Binh Minh on Sep 5, 2008 10:38 AM

[Former Member]

Hi

Actually there is no dummy cost center, we are using only dummy profit center.

While doing postings in FI, we need to assign the co assignment to capture the data into controlling through cost center or internal order any cost object.

If any FI posting will be happening, then the such transaction will post to dummy profit center because at the end of the we need to reconcile the data between FI and co because of this reason we can maintain the dummy profit center.

Regards

Madhav

[srinivasa_maruvada]

Hi

Usually data will be flown to standard Cost center or Profit centre via standard customization according to the requirement of client. In some times if the data is not flown to standard cost centre or profit centre, first the data will go to dummy centres and from there we need to move the data to standard centres.

Cheers

Srinivas

[Former Member]

Hi Srinivas,

thank you for replying me.

When should I use dummy cost center, dummy profit center?

Please tell me a detail example

thank in advance

Minhtb

[srinivasa_maruvada]

If the system does not identify the center, it will post data in to dummy centres. So you need not post any data into these centres. However at regular intervals you need to check the values of these centres and transfer to relevantl centres by manually.

Cheers

Srinivas

[Former Member]

Hi Tran, Dummy Profit Center In SAP, we need to create a dummy profit center when you activate profit center. It is mandatory. This dummy profit center gets values when the system could not find regular profit center in its attempt. We need to configure the system such a way, there is no posting into dummy profit center. Or otherwise, by mistake, if it gets posting, the same have to be post PCA documents to clear them. Then only we get balanced Profit Center wise statement of income or balance sheet. Dummy Cost Center There is no such term in SAP and there is no need to use any of the cost center as dummy cost center. Only very few companies use some cost center for making accounting adjustments and shall not be allocated to other cost objects including products, I think that it is better that we need not such term in our consulting and practice of Controlling. Trust this answers your query!