Profit center is used for handling internal controlling and part of Enterprise Controlling module and is integrated with new General Ledger Accounting. Profit center allows to handle the responsibilities of respective units when the company divided into units (profit centers) and treats the units as separate companies within the company.

Profit center accounting is an organizational unit which reflects organization management-oriented structure for internal control. Profit Center Accounting evaluates the individual, independent areas profit or loss of within an organization.

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

Key Features: -

• Analyse fixed assets by profit center.
• Determines profits and losses.
• Determine profit for internal areas of responsibility.

Create Profit Center Group: -

Step-1: Go to transaction KCH1.

Go to Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center Group → Create.

Step-2: Select the Controlling Area and click on tick mark to proceed.

Step-3: Enter Profit Center Group name and press Enter.

Step-4: Enter the Short Description for the profit center group.

Step-5: Click on Save icon to complete the profit center group.

Create Profit Center: -

Step-1: Go to transaction KE51.

Go to Accounting → Controlling → Profit Center Accounting → Master Data → Profit Center → Individual Processing → Create.

Step-2: Select the Controlling Area and click on tick mark to proceed.

Step-3: New screen Create Profit Center screen will open. Enter new unique Profit Center and click on Master Data to proceed.

Step-4: Enter the Name, Long text, Person Responsible, Profit Ctr Group.

Step-5: Click on Save icon to save the profit center.

Step-6: Once the profit center saved successfully, click on Activate icon to activate the profit center.