Standard profit center hierarchy in a controlling area contains all the profit centers in it. Standard Profit Center Hierarchy is required to group the profit centers in hierarchical order.

Standard Profit Center Hierarchy required to create before creation of Profit Center. Create/change the hierarchy structure can be done in Profit Center Accounting or Customizing for Profit Center Accounting.

Creating Profit Center Hierarchy -

Below process is to create the standard profit center hierarchy TC-PCH (TC Profit Center Hierarchy).

Step-1: - Go to transaction KCH1.

(OR)

Go to Accounting → Controlling → Profit Center Accounting → Master Data → Standard Hierarchy → KCH1 – Create.

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

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

Step-4: - Enter the Short Description for the profit center group and click on Lower Level button to add next level profit center group.

Step-5: - Add required profit center Groups to the hierarchy.

Step-6: - To add Profit Centers to the Group, select the particular Profit Center Group and click on Profit Center button.

Step-7: - Enter the Profit Centers according to the requirement.

Step-8: - Click on Save button to save the changes.

Step-9: - Status bar displays the below message once the Profit Center Hierarchy saved successfully.

Technical details -

• Transaction: KCH1
• Menu Path: Accounting → Controlling → Profit Center Accounting → Master Data → Standard Hierarchy → KCH1 – Create