Goods Movements Between Profit Centers 

Use

Internal goods movements can result in a flow of materials between profit centers.

In order to display this material flow in a way suitable for Profit Center Accounting, you need to think of the profit centers as logical companies. This gives you a sales transaction on the sender side and a goods receipt on the receiver side. You cannot reflect this in Profit Center Accounting using the original postings. Consequently, you need to create additional assignments.

Up to and including Release 3.1, all data posted in Profit Center Accounting was valuated from the standpoint of the legal units (company codes). The valuation method were taken directly from the original posting. In Release 4.0, you can use transfer prices to valuate material stocks and goods movements from a group-wide viewpoint or from the viewpoint of the individual profit centers. For more information on this subject, see Multiple Valuation Approaches/Transfer Prices.

Using account determination rules which you can define in Customizing, the system generates and updates additional posting lines in Profit Center Accounting based on the original document. If you are using prices determined from the legal viewpoint, no changes are made to the original document, which means that Financial Accounting (FI) and Materials Management (MM) are not affected. However, if your organization uses profit center valuation in FI, these additional posting lines are updated there as well.

For some goods movements, no additional postings are necessary. You can exempt these movements from the account assignment logic by defining special handling for them.

For more information, see Customizing for Profit Center Accounting.

Activities:

First you need to decide for which material types you want to reflect a flow of materials between profit centers. Enter all these material types in the account determination table. Material types which are not found there are ignored.

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.

On the whole, you can make account determination dependent on the following criteria:

For each table entry, accounts are stored for the following:

These accounts are profit and loss accounts, though they are not cost elements.

Account determination for the different goods movements is demonstrated in the following examples:

Example: Material Consumption for a Production Order

Example: Consumption Posting Without Receiver Records

Example: Goods Issue for Delivery Note

Example: Stock Transfers