COPA - Profit centers in real estate objects

[Former Member]

Hello Gurus,

We intend to settle revenues to profitability segment in COPA.

We only intend to do this at rental object level. where profit centers are input.

By design it is mandatory to have profit center at BE, BU and Land level.

However if we make it non mandatory, If the profit center is not input at business entity, building and land  but only input at rental unit level, does it impact in any way?

Regards

Veena

[Former Member]

Hi Veena,

It is not a problem, but I guess you will not be posting revenues and costs to the higher level objects? If so you also need a profit center there.

Regards,
Jeroen

[Former Member]

HI,

What is the difference between release of BE/BU and only create of BE and BU??

If costs and revenues are not settled to BE and BU, then do the statuses make a difference?

Veena

[JFPC]

Hi Veena,

Only when releasing BE/BU it is possible to post costs or to settle costs to them. If this is not necessary you don't have to release them. Then the creation of BE/BU is fine.

So when releasing the BE/BU the get an IMKEY and then you can post costs on them in FI or in CO.

Kind regards,

Jeroen

[Former Member]

Dear Jeroen, Veena,

I just want to share with you some related points from my view.

1/ Why do we can release BU without releasing BE?

2/ As described in SAP RE-FX Doc, we must release both BE & BU to be able to do Periodic Posting. But actually, I don't need to release either BE or BU for Periodic Posting.

3/ I agree with Jeroen that only when releasing BE/BU it is possible to post costs or to settle costs to them. Additionally, you need to release BU for Asset Assignment.

Please kindly give me your advice on these above points.

Thanks & Best Regards,

Duc Lam.

[JFPC]

Hi Duc Lam,

1) It is possible to just release the BU. In that case is it possible to make financial postings on the building. If you don't release the BE then you cannot post on the Business Entity.

2) When do you make periodic postings on the BE and BU? Normally you assign a rental object to a rental contract. If you have other contracts with BE or BU assigned then the periodic postings post on these objects. It is dependent on the client if he or she wants to assign certain objects in a contract. It is possible to just customize the assignment of buildings and release them.

3) You are right that if you integrate with FI-AA you have to release the building to be able to post depreciation on these objects.

Kind regards,

Jeroen

[Former Member]

If you have not entered a profit center in the subordinate objects, it will inherit the profit center of the higher level object [BU/PR/BE]. A mandatory setting in the RO only means that you need to review this field each time. It make sense if your requirement calls for RO settlement to different profit centers.

[Former Member]

Hi,

So is it Ok not to input PC at BE/BU/PR level? On creation there is no PC error on release there is PC error.

Veena