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 flows 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 cannot using the original postings. Consequently, you need to create additional account assignments.

This means that you have to create accounts with the following meaning:

·        internal revenues

·        internal changes in stock

·        Delivery from profit center

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.

Integration

The addtional postings in the profit center valuation view are only visible in Financial Accounting if the following conditions are met:

...

       1.      You are using multiple valuation approaches/transfer prices.

       2.      You are using the profit center valuation view in Financial 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

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 Financial Accounting Customizing, 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 make sense 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.

In an additional step, you can also use your movement type to exclude certain material movements from the account assignment logic.