Function documentationReorganization of Cost Centers

 

When you perform a profit center reorganization, you can have cost centers included automatically in the reorganization.

The system supports you in including in the reorganization plan the cost centers that are affected by the reorganization of profit centers.

Integration

The cost center is part of the standard derivation hierarchy.

It is always an object on the first level of the derivation hierarchy.

Prerequisites

You have ensured that the prerequisites for the reorganization are met and you have made the general Customizing settings for the reorganization.

For more information, see Prerequisites and Customizing for the Reorganization.

The following special prerequisites need to be met so that the system can include the object type Cost Center in the reorganization plan: You need to create a new time slot with a changed profit center for the cost center. For this, the following prerequisites must be met:

  • The key date of the cost center change (period begin of the new analysis period) and the reorganization date are the same.

  • The reorganization plan contains the change within the cost center from the previous profit center to the new profit center.

  • No postings have yet been made to the cost center in the reorganization period. The CO period must still be closed from the reorganization date for all actual CO transactions.

    To check this, use the program Check Period Lock for CO Transactions.

Once the system has included the cost center in the reorganization plan, the system issues a confirmation message accordingly for the relevant object on the second level of the derivation hierarchy (such as the fixed asset).

It is not possible to delete an analysis period for a cost center that has been included in a reorganization plan because dependent objects might have already been reorganized.

Features

When the prerequisites above are met and the system has consequently been able to include the object type Cost Center in the reorganization plan, you do not need to perform any reorganization activities for the cost center itself. This is due to the real time-dependency of the cost center. In other words, you do not need to generate any object lists or perform any reassignment or transfer posting. Reorganization activities only need to be performed for objects that are subordinate to the cost center.

Example

Example 1:

Initial Situation:

Profit center A is assigned to cost center 1.

Due to a profit center reorganization, profit center B now needs to be assigned to this cost center. From 2010-06-01, there is a new analysis period with profit center B for the cost center.

Checks performed by the system:

The system performs the following checks:

  1. Has new General Ledger Accounting been activated?

  2. Has the required business function been activated?

  3. Is the Profit Center Update scenario assigned to the relevant ledgers in new General Ledger Accounting?

  4. Have all actual transactions from the analysis period onwards been closed in Controlling?

  5. Is there a reorganization plan for the analysis period that contains the change from profit center A to profit center B? The system checks whether the key date of the cost center change (period begin) and the reorganization date are the same.

Result:

When all checks have been run without errors, the cost center is included in the reorganization plan.

Example 2:

Initial Situation:

Profit center A is assigned to cost center 1.

In the new analysis period, profit center B is assigned to the cost center.

The reorganization plan contains the cost center as well as the change in assignment from profit center A to profit center B on the reorganization date.

The reorganization manager establishes that the change in assignment is wrong: It transpires that profit center C needs to be assigned to the cost center. In the new analysis period, profit center B needs to be changed into C accordingly.

Checks performed by the system:

The system performs the following checks:

  1. Has new General Ledger Accounting been activated?

  2. Has the required business function been activated?

  3. Is the Profit Center Update scenario assigned to the relevant ledgers in new General Ledger Accounting?

  4. Have all actual transactions from the analysis period onwards been closed in Controlling?

  5. Does the reorganization plan for the cost center already contain objects on the second level of the derivation hierarchy that use the old change in profit center assignment (such as fixed assets with master records in which the reassignment from profit center A to B has already been performed)?

  6. Is there a reorganization plan for the analysis period that contains the change from profit center A to profit center B?

Result:

When checks 1 and 3 have been run without errors and there are no second-level objects in the reorganization plan, the system includes the cost center in the reorganization plan.