PROFIT CENTER reorganization

The organization of a company is represented by reporting units, such as profit centers. The reorganization of these units results in adjustments to master data and the transfer of transaction data.

All affected objects must be consistently reassigned to the new profit centers. Hence, the assignment of profit centers and their derivation logic to be considered.

PC reorganization is also possible in ECC.

•  No transfer of plan or budget data on profit center
• No support to revenue accounting and reporting (RAR)
• It handles changes in Balance Sheet Items such as material inventory, Fixed Asset Inventory, work in progress etc., and does not accommodate transfer of balances from P&L Account
• Profit center can’t be changed for assets or for any account objects, such as cost centers, orders,
• WBS, networks which are assigned to an asset,

Most objects in the SAP system are assigned to a profit center. The assignment is defined when object is maintained such as cost centers or automatically derived based on the inheritance of a PC from one object to another

When PC is changed, the assignment of dependent objects needs to be changed as profit centers are assigned or derived from those objects.

E.g

• Cost center (PC) is assigned to assets and change in PC assignment should also reflect in asset.
• If a profit center is used as product line and If profit center change is initiated in materials, then dependent objects will also be considered such as: 

                           1. Purchase documents

                           2. Sales documents

                           3. Production orders

                           4. Process orders

                           5. Product cost collectors

•  If material is included in organizational change, then all dependent objects as mentioned above are automatically derived and added to the organizational change. 

 If material profit center and profit center from above objects differ, those objects can be manually changed, or customization can be used to consider the object change.

1. Cost center
2. Orders
3. Product(Material)
4. Fixed Assets
5. Projects & WBS Elements
6. Networks

• To transferring open items
• For preparation activities

1. Create, Edit and Delete an organizational change
2. Simulate an organizational change (optional).
3. Activate an organizational change
4. Process an organizational change transfer postings from old to new PC
5. Complete an organizational change.

 Report/App is available to view effected master data.