Summary -

In this topic, we described about the Profit Center Standard Hierarchy and Creating Profit Center Hierarchy process along with technical information.

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.

Profit Center Standard Hierarchy

(OR)

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

Profit Center Standard Hierarchy

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

Profit Center Standard Hierarchy

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

Profit Center Standard Hierarchy

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

Profit Center Standard Hierarchy

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

Profit Center Standard Hierarchy

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

Profit Center Standard Hierarchy

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

Profit Center Standard Hierarchy

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

Profit Center Standard Hierarchy

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

Profit Center Standard Hierarchy

Technical details: -

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