Goods Movements Between Profit Centers

Use

In the SAP system, profit centers are regarded as “companies within the company”. In Profit Center Accounting, therefore, a flow of materials within a company is considered a sale by the sending profit center and a goods receipt for the receiving profit center. You cannot reflect these two processes using the original postings. Consequently, you need to create additional account assignments.

This means that you have to create accounts for the following:

  • Internal revenues

  • Internal changes in stock

  • Delivery from profit center

You create these accounts in account determination for internal goods movements in Customizing for Controlling under Start of the navigation path Profit Center Accounting Next navigation step Transfer Prices Next navigation step Settings for Internal Goods Movements End of the navigation path .

Caution Caution

The additional accounts are P&L accounts that can be posted to automatically and cannot be cost elements. They are posted to regardless of whether or not you use multiple valuation approaches/transfer prices in your system .

If you do use parallel multiple approaches/transfer prices in your system, however, internal material flows will only be posted in the profit center valuation view .

End of the caution.

Integration

If you use parallel valuation approaches / transfer prices, the system updates the additional postings in the profit center view to Financial Accounting as follows:

  • Classic General Ledger Accounting

    • If you use the profit center valuation approach in the relevant controlling area and have defined a parallel currency in the profit center valuation for the company codes of that controlling area, the system automatically updates the additional posting items.

    • If you do not use the profit center valuation approach in the relevant controlling area, the system does not update the additional lines created in legal valuation.

  • New General Ledger Accounting:

    • If you use the profit center valuation approach in the relevant controlling area and have defined a parallel currency in the profit center valuation for the leading ledger and other relevant ledgers, the system automatically updates the additional posting items.

    • If you do not use the profit center valuation approach in the relevant controlling area, the standard system does not update the additional lines created in legal valuation. You can use the Business Add-In (BAdI) Update of Internal Revenues Between Profit Centers ( FAGL_INTERNAL_ACCOUNTS ) to activate updates (at the goods value) in the ledgers in new General Ledger Accounting.

Features

When a flow of goods occurs between profit centers, the system generates and updates additional posting lines in Profit Center Accounting in the above-mentioned additional accounts.

You can make the price dependent on any of the following factors:

  • Material type

  • Valuation class

  • Valuation grouping code

In the case of internal goods movements with valuated stock in transit, you can differentiate the stock change account between sending and receiving profit centers. In this case, you need to create an additional account for internal stock changes for the receiving profit center and store it in account determination for internal goods movements.

Note Note

You can use stock in transit to override account determination selectively for internal goods movements (such as for individual materials). For this, you can use the BAdI Modification of Account Determination for Transfer Prices ( BADI_TP_ACCOUNT_MODIFICATION ).

End of the note.

To see examples of postings for various types of internal goods movements, see:

Material Consumption for a Production Order

Consumption Posting Without Receiver Records

Goods Issue for Delivery Note

Stock transfers

Activities

In Customizing for Profit Center Accounting, create the accounts mentioned above.

In Profit Center Accounting Customizing, decide which material types you want to depict the material flow between profit centers for.

It might be useful to leave out material types such as inexpensive raw materials or operating supplies. For these material types, only the consumption postings on the receiver side are debited to the profit center.

If required, you can also use your movement type to exclude certain material movements from the account assignment logic.