SAP CCA - Profit Center

SAP CCA-Profit center is used for managing internal controlling. When you are dividing your company into profit centers, it allows you to delegate responsibilities to the decentralized units and allows you to treat those as separate companies in a company. It also allows you to calculate key figures in cost accounting like- ROI, Cash flow, etc.

Profit Center is a part of Enterprise Controlling module and is integrated with new General Ledger Accounting.

Key Features of SAP CCA Profit Center

• Profit Center Accounting is used to determine profit for internal areas of responsibility.

• It lets you determine profits and losses using either period accounting or the costof-sales approach.

• It allows you to analyze fixed assets by profit center, thus using them as investment centers. This makes it possible to expand profit centers to investment centers.

Why do we create Profit Center?

The main aim of creating a Profit Center in Controlling is to analyze the cost of a product line or a business unit.

You can also generate profit and loss accounts according to Profit Center and also generate balance sheets however Profit center should only be used for internal reporting purposes.

The key components of a profit center includes- name of the profit center, the controlling area under which it is assigned, time period, person responsible for the profit center, standard hierarchy, etc.

To create a Profit Center, follow the steps given below −

Step 1 − Use T-code: KE51 or go to Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center → Individual Processing → Create.

Step 2 − In the next screen, enter the controlling area in which profit center is to be created and click the tick mark icon.

Step 3 − In the next screen, enter the unique profit center ID and click Master Data.

Step 4 − A new window will open, enter the following details.

• Profit center name and short description of the profit center.
• Person responsible for the profit center.
• Profit center group for which the profit center belongs.

Step 5 − Click the save icon at the top to create the profit center in inactive mode. To activate the profit center, click the icon as shown below.

Create Profit Center Group

To create Profit Center Group −

Step 1 − Use T-code: KCH1 or go to Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center Group → Create.

Step 2 − Enter the Controlling Area in which the profit center is to be created.

Step 3 − Enter the Unique Profit Center Group Id as shown below and press Enter.

Step 4 − Enter the short description for the profit center group and click the save icon at the top.