Kishore,
Profit center is used for internal controlling purpose. It helps you to analyze clearly the costs and revenues.
You can create Profit Centers according to product lines and Functions. Before creation of profit center we should do the basic settings you divide your business or company into internal areas of resposibility. You divide your business into profit centers by assigning it to master data like Materials, Projects , Cost centers, sales orders .
It is necessary to assign to SD sales orders to Profit Centers in order to reflect receivables, sales revenues and sales deductions on profit centers
The profit center assignment is also passed on from the sales order through the supply chain: sales order --> delivery note --> goods issue --> billing document. This means that the when a goods issue is posted, the corresponding revenue value for the goods is also passed on to the profit center of the sales order.
Each order item is assigned to a profit center. The system proposes the profit center of the material in the supplying plant as default, you donot assign profit center manually. This default supports both a product‑oriented and geographical division of your organization into profit centers.
AFter Creation of profit center you will assign sales order to profit center.
IMG --> Controlling --> Profit Center Acounting > Assignments of A/c assignemnt objects to profit centers>sales orders --> assign sales orders
The system uses these substitution rules to determine the profit center from sales orders. You also need to activate these substitutions for each individual controlling area
b. for that we need to activate the indicator "Ent org active" then we proceed accordingly.
IMG --> Controlling --> Profit Center Acounting --> Enterprise organization
c. The system proposes the profit center of the material in the supplying plant as default, you donot assign profit center manually. When you create a sales order item, the default profit center is copied from Material master or Substituioon rule
IMG --> Controlling --> Profit Center Acounting > Assignments of A/c assignemnt objects to profit centers>sales orders --> Sales orders substituion rules
Profit center configuration
It is configured in Controlling:
IMG --> Controlling --> Profit Center Acounting --> Master Data --> Profit Center
When you are trying to create a profit center it will ask for Contolling area.
Please go through the IMG settings and also go throtuh the URL's provided by our friends as a reply.
Regards
Sathya
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