Profit Center Accounting
Profit Center Accounting
Profit Center Accounting
Responsibility Accounting
EC-PCA lets you calculate internal operating results for profit centers. A profit
center represents an organizational subunit that operates independently on the
market and bears responsibility for its own costs and revenues. You organize
your organization into profit centers by assigning the master data of each profit-
relevant objects (materials, cost centers, orders, projects, sales orders, assets
and cost objects) to a profit center.
All the business transactions in the R/3 System which are relevant for cost and
profits are updated in the profit centers at the same time they are processed in
the original module, and organized according to cost and revenue elements.
This transforms all the flows of goods and services within the company into
exchanges of goods and services between profit centers. This profit center
structure applies for both actual postings and profit center plan data.
It is also possible to treat a profit center as an investment center. In addition to
the flows of goods and services, you can transfer selected balance sheet line
items (fixed assets, payables and receivables, material stocks, and work in
process) to profit centers on a periodic basis. This makes it possible to calculate
such key figures as profit on sales, return on investments and cash flow.
Parallel Currencies in Profit Center Acctn.
EC-
Profit Center Accounting
PCA
Company Special
Transaction
Code EC PCA
Currency
Currency Currency
-
Organizational Units & Master Data
A Grp Operating
Operating Concern Concern (4000)
A Grp Controlling
Controlling Area Area (1000)
Profit Centers
Corporate
Laminate Flooring Door Clads Cubical Veneer
common
Cocd
Company Codes 4000
Profit Centers
Financial Accounting
1 2 3 4 8
Assets Liabilities Equity Expense Revenue
accounts
1 2 3 4 8 9
Current Non- Material Primary Revenue
opera- inventory cost Secondary
financial elements cost
ting elements
assets costs, elements
and revenue
short-
term
capital Controlling
Corporate
Laminate Flooring Door Clads Cubical Veneer
common
Cocd
Company Codes 4000
Sales and
General
Cost Centers Purchase
Exp
Marketing
Exp