Problems with extra Profict Center ECC 6.0?

[Former Member]

Dear Gurus,

My client has 4 Business areas in 4.7. Upgradation is going on now to ECC 6.0. Now, the issue is with one Business Area in which there are two division. Client wants to create 5 profit centers in ECC 6.0 by dividing one Business Area in 4.7 into two. What could be the problems if we do this? Or is there any other way to find out the profitability of the two divisions which are there now in one Business Area.

I will explain the problem again

there are 4 Business areas

In one business area there are two divisions

Client wants to know the profitability of these two divisions separately. for this client says he will have separate profit centers for these two division. So, total Profit centers will become 5 in ECC 6.0

My understanding is Problem comes with balance sheet. probably.

Can anybody explain?

Points are guaranteed for useful answer.

Regards

[Former Member]

Hi KVkr,

I just wanted to know in 4.7 itself, ho were u diffrentiation the two divisons in SAP. I will say like at the time of posting any transaction you will always psot to a single business area. So how were u diffrentiating these two divsions

Reagrds

Pratiksha

[Former Member]

No differentiation in 4.7. It was becoming difficult for the management to know which division is making how much profit/loss. That's why now they want to take care of the problem now in this upgradation. Earlier they were doing some magic in the excel by taking figures from different GLs. Even then they never used to get perfect picture separately for this divisions.

Now, what could be the best solution for them. To have two Profit Centers? In this case Balance sheet will have problem i think. Because, they buy Raw Material centrally. It becomes difficult to bifurcate the expenses.

Is there any other way out to solve this problem. Can we have one profit center and two plants and have some sort of Report where in we can have the profitabilty for each division. Is this possible?

Regards