In this activity, you can activate profit center valuation in CO-PA for individual controlling areas. If you do so, the system valuates both external sales and internal sales between profit centers (such as stock transfers between different plants) from the viewpoint of the individual profit centers.
In profit center valuation, both internal and external sales are valuated with a cost of goods manufactured based on transfer prices.
In planning, you can define plan versions to use profit center valuation.
In the information system, you can define and analyze reports that show data for both profit center valuation and legal valuation.
You should only activate profit center valuation in CO-PA if you want to be able to valuate exchanges of goods and services between profit centers using transfer prices and analyze the results of this valuation in CO-PA.
If you activate profit center valuation, the system creates separate line items for legal valuation and profit center valuation.
Consequently, this about doubles the volume of actual data transferred to CO-PA! The number of profitability segments, however, remains the same.