Balance sheet and P&L at Profit center and Business area level

[former_member186064]

Hi Experts,

I just heard that if we use new gl and document splitting then we can draw Financial statements (B/s and P+L) at profit center level and business area level.

My doubts are:

1. Will these financial statements be sufficient for legal requirements. If we define divisions in company code as profit center level then can we generate balance sheet for that divisions (Profit Center) and other statutory reports.

2. How to generate B/S and P&L for a perticular profit center. Do we need to define separate financial statement version for profit center balance sheet?

Please help.

Regards,

RKS

[Former Member · Accepted solution]

RKS,

Yes, you can have the format when you specify the fin. stmt version in the field FIS Annual Rep. Structure field. You would be able to see both BS and PL.

Thanks,

Avinash

[former_member186064 · Accepted solution]

Thanks Avinash,

[Former Member]

Hi,

The characteristic in NewGL against which you can draw statutory reports is Segment (as a matter of fact, SAP developed this characteristic to meet IAS requirement). Below is SAP's definition of Segment:

Financial Accounting (FI)

Division of a company that can create its own
financial statements for external reporting. With IAS, a distinction is made
between two types of segment:

• Business segment

• Geographical segment

A segment can be entered in the master record of a
profit center. The segment is then derived from the assigned profit center
during posting.

Business Area and Profit Center are characteristics for internal reporting.

Business Area definition:

Financial Accounting (FI)

An organizational unit of financial accounting that
represents a separate area of operations or responsibilities within an
organization and to which value changes recorded in Financial Accounting can be
allocated.

You can create financial statements for business
areas, and you can use these statements for various internal reporting purposes

Profit Center definition:

Controlling (CO)

An organizational unit in Accounting that reflects a
management-oriented structure of the organization for the purpose of internal
control.

Operating results for profit centers can be analyzed
using either the cost of sales approach or the period accounting
approach.

By analyzing the fixed capital as well, you can
expand your profit centers for use as investment centers.

Hope this helps.

Regards,

Ming

[Former Member]

RKS,

Yes, it is possible to generate complete financial statement for a profit center and segment (I don't think business area even though it is available in the scenarios; it is not one of the document splitting characteristics).

You can use drill down reporting (S_PL0_86000028) to generate Financial statements as per profit center/segment  or use S_alr_87012284 with dynamic selection.

Thanks,

Avinash

[former_member186064]

Avinash,

Thanks for your response.

I tried t.code (S_PL0_86000028) but it gives bl balance only.

Cant we have format like balance sheet in FI (F.01) i.e proper headings like Liabilities & Assets?

Regards

RKS

[Former Member]

Hi,

your first question: I doubt that these financial statements are sufficient for legal requirements because

1: PRCTR / GSBER are derived mainly from CO-objects thus you need a CO-concept that has a foucs on legal requirements, one missing cost element may cause problems in legal requirement reporting...

2: bank accounts / cash accounts belong to a comp. code but they don't belong to a PRCTR / GSBER so who owns the cash...

3: If you use SAP payroll and split employees to different CO objects based on infotype 0027 how are the balance sheet values (distribution of liabilities) posted to GL accordingly for PRCTR / GSBER? Check SAPNET note 1039346 and related notes, the functionality is only available in some countries (US, DE, CH).

4: a number of organizational questions (which will cause huge auditing questions): many functions can only be executed for a comp. code (not for a PRCTR / GSBER), eg depr. run, FC valuation,... the authorization concept looks extremly complex if there is a need to allow/limit functions based on PRCTR / GSBER.

your second question: no, just use PRCTR / GSBER in the newGL reports by adapting those reports using FGI2 T-code.

BR Christian