Profit Centers in Contract Accounts Receivable and Payable

Features

Contract Accounts Receivable and Payable (FI-CA) supports account assignment to a profit center for postings to:

Expense and revenue accounts
Bank accounts, bank clearing accounts, and cash accounts
Receivables accounts, liabilities accounts, and down payment accounts
Tax accounts

Note Note

Account assignment to a profit center is only possible if the field status group of the G/L account allows this type of account assignment. The field status group is entered in the G/L account master record.

End of the note.

Profit Centers in Postings to Bank Accounts and Bank Clearing Accounts

You can post account assignment to profit centers in bank posting or cash journal posting in the following processes:

Payments and debit memos resulting from the payment program
Payments using payment lot, check lot, credit card lot
Payments using the cash desk or cash journal
Payments using external cash desks
Returns

Below is a description of how you can enter a profit center in the processes mentioned. In all cases, you must assign the profit center directly to the item on the bank account or cash account, regardless of which profit centers are posted in the paid items or in the payments on account. From the viewpoint of the general ledger, this results in related receivables and payables on the affected profit centers. If you made the appropriate settings for new General Ledger Accounting, then the system automatically creates clearing items for these receivables and payables on the affected profit centers during the general ledger transfer.

Payment program

The system determines the bank clearing account using posting area 1061. (In Customizing, choose Start of the navigation path Contract Accounts Receivable and Payable Next navigation step Business Transactions Incoming/Outgoing Payment Creation Define Bank Accounts for Payment Program End of the navigation path ). There you can enter a profit center in addition to the account number and the business area.

Payment Lot, Check Lot, Credit Card Lot

The Profit Center field is now available in the lot header, as well as in each lot item. During posting, an entry in an item takes precedence over an entry in the header. If you create or change a lot manually, you can enter the profit center directly. If you are using sequential files to generate the lots, you can enter the profit center in the corresponding structures - BFKKZK for the header of the lot and BFKKZP for the lot item. If you generate payment lots from the electronic bank statement, then the system copies the profit center from the items of the bank statement (table FEBEP). The events 0953 and 0954 allow you to set the profit center for the payment lot header or payment lot item to a different value. The system also uses the profit center that was entered on the payment lot for postings to a clarification account.

Cash Desk, Cash Journal

If you are entering payments, the system can propose a default profit center in the same way that it proposes a company code or business area. You can enter default values for the business area and profit center in Customizing at the level of the cash desk, the office, or the company code. (In Customizing, choose Start of the navigation path Contract Accounts Receivable and Payable Next navigation step Business Transactions Processing of Incoming/Outgoing Payments Cash Desk/Cash Journal Define Default Account Assignments End of the navigation path ).

External Cash Desks

For payments using external cash desks, you can set the profit center using events 6200 or 6210. For event 6210, you can use sample function module FKK_SAMPLE_6210_TFK100K. If you register this function module, the system adopts the values entered in Customizing (see the Cash Desk section).

Returns

If you enter the returns lot manually, you can enter profit centers both at the header level and at the item level. Just as in the payment lot, the entry in the item takes precedence. If you are using sequential files to generate the lots, you can enter the profit center in the corresponding structures - BFKKRK for the header of the lot and BFKKRK for the lot item. If you generate returns lots from the electronic bank statement, then the system copies the profit center from the items of the bank statement (table FEBEP). The events 0963 and 0964 allow you to set the profit center for the returns lot header or returns lot item to a different value. The system uses the profit center entered in the returns lot for posting to a clarification account, and it also uses it as a standard value for receivables for charges, along with expense and revenue from charges.

Profit Center for Payables, Receivables, and Down Payments

You can enter account assignment to a profit center in line items that you post to a business partner. The same applies here as stated above - namely that this account assignment is not possible unless the field status group of the assigned G/L account does not suppress the Profit Center field.

Note Note

Since the Profit Center field did not exist in business partner items before SAP ERP 6.0, Enhancement Package 4, the setting for it in the field status group (profit center allowed or not) was not relevant. Accordingly, it does not make sense to assume, based on the current setting in your system, whether or not your enterprise wants account assignment to profit centers in the future. Therefore, a new Customizing setting was introduced at the level of the company code (IMG activity Set Up Company Codes for Contract Accounts Receivable and Payable), where you can specify if you want to allow account assignments to profit centers for business partner items. Only if you allow the account assignment using this setting is there a resulting check of the field status group. This also makes it possible to have potentially different treatment of different receivables accounts, liabilities accounts, and down payments accounts.

End of the note.

We would also like to point out that there are differences between FI-CA and classic Accounts Receivable (FI-AR) and Accounts Payable (FI-AP). In classic Accounts Receivable and Accounts Payable, it is not possible to post account assignment to a profit center on customers or vendors. Instead, if you made the appropriate settings for new General Ledger Accounting, the system assigns profit centers and distributes amounts to profit centers automatically in related subsequent items that are used for updating the general ledger.

Activities

To be able to use the profit center in Contract Accounts Receivable and Payable with the full scope described here, you have to make the following settings in Customizing.

Activation of the profit center for business partner items
Activation is performed per company code. In Customizing for Contract Accounts Receivable and Payable, choose Organizational Units Set Up Company Codes for Contract Accounts Receivable and Payable .
Field status groups check
The field status group is in the G/L account master records of the accounts - receivables, liabilities, down payment, bank, cash and tax - on the Entry/Bank/Interest tab page). You can double-click on it to display the group attributes. The Profit Center field should be specified as an optional entry. If you need to change the setting of a field status group, in Customizing choose Financial Accounting (New) Financial Accounting Global Settings (New) Ledgers Fields Define Field Status Variants . On the next screen, select the field status variants relevant for the company code in question and then navigate to the maintenance of the field status groups.
Define default values for the cash desk
You define default values for the profit center and the business area in Customizing under Contract Accounts Receivable and Payable Business Transactions Payments Processing Incoming/Outgoing Payments Cash Desk/Cash Journal Define Default Account Assignments .
Adjust the account assignment keys for CO objects
If you have defined account assignment keys for which you derive CO objects dependent on company code, business area, or segment, check whether you need to make the settings per profit center. For example, this is necessary if you derive a cost center and a profit center is defined in the cost center. In this case, the profit center in the derived cost center should agree with the profit center previously transferred from a business partner item. You make the necessary settings in Customizing under Contract Accounts Receivable and Payable Basic Functions Postings and Documents Document Define Account Assignments for Automatic Postings Define CO Account Assignment Keys .

Example

The following section describes some typical business transactions where business partner items are posted, with an explanation of how the system determines the profit center that is posted.

Invoices and Credit Memos

Normally profit centers are derived or defaulted for revenue and expense items. The profit center determined in this way is inherited in the receivable or payable. If revenue or expense items occur for different profit centers, the result can be that more business partner items arise in total, because there is no merging of multiple business partner items with different profit centers. Inheritance of the profit center from the offsetting items applies for posting using requests and for all current invoicing programs (invoicing in Contract Accounts Receivable and Payable, invoicing using SD interface, IS-U invoicing, payment plan interface of the Industry Solution Insurance).

Down Payment Requests and Budget Billing Requests

If you create requests manually, you can enter the profit center directly. You can enter default values and values for automatic creation (such as budget billing requests in the industry component Utilities) in Customizing under Start of the navigation path Contract Accounts Receivable and Payable Next navigation step Basic Functions Postings and Documents Document Define Account Assignments for Automatic Postings Automatic G/L Account Determination Define Accounts for Budget Billing Down Payments End of the navigation path .

Payments on Account and Down Payments (Without Down Payment Request)

The profit center is set using a function module for event 0114. If you do not register your own function module, the system processes the standard function module FKK_SAMPLE_0114. This module adopts the profit center from the first G/L item of the document. This is the line item on the bank account, bank clearing account, or cash account.

Down Payments, Budget Billing Payments, Cash Security Deposits (with Request)

Down payments, budget billing payments, and cash security deposits that arise due to clearing of requests adopt their profit center from those requests.

Charges Receivable (Returns)

The system determines the profit center for a charges receivable from the paid items and the items on account of the payment document. For each profit center concerned, the system calculates the total amount that arises for it (absolute amount without positive/negative sign). The profit center with the highest total amount is then adopted by the charges receivable. If the system is not able to determine a profit center in this way, then the profit center from the bank posting/bank clearing posting of the payment document is used. If that line item also does not contain a profit center, then the system adopts the profit center entered in the item of the returns lot.

Charges Receivable (Dunning)

For dunning charges, the system determines the profit center using event 0363. If you use standard function module FKK_SAMPLE_0363, then the system groups the dunned items by profit center, and determines the profit center from the group with the highest amount.

Transfer Open Items

In the case of the transfer of open items, the profit center is inherited from the item being transferred.

Open Items from Clearing Reset

For clearing reset, there are different options:

If only one new open item is generated due to a reset, then the system adopts its account assignments, including the profit center, from one of the items that was previously cleared.
If the distribution to accounts is kept, and there are different profit centers in the previously cleared items, this results in various new items, each of which contains the profit center of the item cleared previously.
If (in the case of a payment document) the amount is returned to the clarification account, then this posting receives the profit center from the related payment lot item.

Derived Posting Items

When open items are cleared, the system generates additional postings. These additional postings can include cash discounts, payment surcharges, exchange rate differences, interest on arrears. You enter account assignments for these postings in Customizing. If items that were involved in the clearing already have account assignment to a profit center, then that profit center takes precedence over a profit center that the system determines from Customizing. However, the derivation from Customizing remains in effect for those cases where the open items themselves do not have account assignment to a profit center. The system normally derives the account assignments from table TFKCOD using an account assignment key. You can enter cost centers, orders, profit centers, and project numbers in that table, dependent on the company code, business area, and segment. You can enter those account assignment elements as also being dependent on a profit center that was already determined elsewhere. You can thereby ensure, for example, that when a cost center is determined, it agrees with the profit center that was already adopted from an open item.

Profit Centers in Postings to Tax Accounts

In this context, tax accounts are considered to be accounts to which tax on sales/purchases or withholding tax is posted. The functions described here are not available for other types of taxes (such as, insurance taxes).

Profit Centers with Sales/Purchases Tax
The system supports Distributing Tax Items based on various account assignments (such as, business area, segment, profit center, account assignments from Funds Management).
Profit Centers with Withholding Tax
When you post withholding tax, the system adopts the profit center from the related business partner item. The data you are required to report is recorded in table DFKKQSR. The profit center is also contained in the table, and sample report RFKKQST00 for evaluating the withholding tax data also displays the profit center.