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Profit center implementation in new GL activated system

Katari
Explorer
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Hello Forum,

We are in ECC 6 and EHP 5 system new GL is activated FAGLFLEXT and FAGLFLEXA table are updating from the 2010. Now we are planning to implement profit center accounting without document splitting.

As per client requirement document splitting is not required, in this situation if you want to go for profit center live from financial year start date do we need “new GL migration cockpit”?

If not what could be the best approach to implement the profit center accounting.


Regards,


Raman

Accepted Solutions (1)

Accepted Solutions (1)

iklovski
Active Contributor
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Hi,

Please, distinguish between introducing profit centre and implementing profit centre accounting (EC-PCA). Also, if you have one default profit centre for all transactions on B/S accounts, what is the point of having profit centre? What kind of valid financial reports you would be able to produce, then?

Regards,


Eli

Katari
Explorer
0 Kudos

Hi Eli,

Thanks for your reply, here our client requirement is get the profit center wise P&L and for B/S items they want only one default profit center.

We are implementing the profit center in new GL and we don’t want document splitting, in this situation if you want to go for profit center live from financial year start date do we need “new GL migration cockpit”?

If not what could be the best approach to implement the profit center accounting.

Our requirement is profit center wise P&L

Regards,

Raman

iklovski
Active Contributor

If it's only for P&L, why not using cost centres?

Katari
Explorer
0 Kudos

Hi Eli,

Thanks for your update, if we use only cost centers how to book revenue?

Here as per our client requirement they want profit center wise P&L and for all the B/S items we need to update default profit center, to meet this requirement do we need GL migration cockpit to get complete profit center wise P&L and B/S? We don’t want document splitting and don’t have profit center mandatory for document splitting in “Define Document Splitting Characteristics for General Ledger Accounting”.

I really appreciate if you guide us the best approach to implement PCA as per our requirement.

Regards,

Raman.

iklovski
Active Contributor

You book it in the same way, you book the costs.

Katari
Explorer
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Hi Eli,

can you please advise on the second statement which was mentioned in the above post.

Regards,

Raman.

iklovski
Active Contributor
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Well, what is your current NGL scenario. Technically speaking, you are not obliged to introduce profit centre as split characteristic and you can perfectly use this field in your documents. I'm not sure why you keep mentioning migration cockpit, if you have NGL activate and FAGL* tables are being updated. What are you going to migrate, then?

Katari
Explorer
0 Kudos

Hi Eli,

Once again thanks for your clarification, I am referring the new GL cockpit because of the scenario 2 of new GL migration cockpit i.e.  “Merge of FI and PCA”. As per my scenario how to handle open AR/AP items once we will go to PCA from the cutoff date.

What are the cut over activities I have to take if I will implement PCA as per my scenario?

Regards,

Raman

iklovski
Active Contributor
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But, you won't need PCA, if you don't want to produce trial balance by profit centre. For P&L only, you don't have to activate PCA. Is profit centre is a part of FAGLFLEXA table in your current scenario? Normally, it should be if you went for standard.

Katari
Explorer
0 Kudos

Hi Eli,

We want trail balance also in profit center level, for B/S also we are updating default profit center.

Yes profit center is updating in FAGLFLEXA table, in this situation of the scenario 2 of new GL migration cockpit i.e.  “Merge of FI and PCA” will works for us or do we have any other approach to cover all open AR/AP open items to update profit center level?

Regards,

Raman

iklovski
Active Contributor
0 Kudos

Hi,

In general, PCA is not to be implemented with NGL and in particular you cannot have update in

PCA for AP/AR level with NGL scenario.

If profit centre is already updating FAGLFLEXA, then I fail to understand your question.

Best regards,


Eli

Katari
Explorer
0 Kudos

Hi Eli,

My apology for unable to explain the scenario exactly.

It is profit center introducing in new GL activated system, I am in the testing phase that’s why I am saying profit center is updating in FAGLFLEXA table.

As per my scenario please explain me in broader level what is the process I have to follow to implement PCA to get P&L, trail balance and B/S (default profit center for all B/S items)?

I really appreciate for your explanation.

Regards,

Raman

iklovski
Active Contributor

Hi,

Just to close the issue:

a) PCA (EC-PCA) or 'Profit centre accounting' is not to be activated with New GL.

b) If you have NGL with profit centre in NGL tables, it is possible not to make this as split charcteristic

c) If you say that you have NGL since 2010, then migration cockpit is irrelevant

d) If, however, you have the field 'profit centre', which was not updated in the past and you want to have it updated now, you just have to start and provide this information in your documents

e) For documents, which were posted without 'profit centre', there is nothing to do.

f) When you speak about open AP/AR items in terms of profit centre, you contradict yourself, as you cannot have profit centre there without defining it as split characteristic

g) Introducing new split characteristic in a living project is technically possible, though tricky. In order to do so, consult first notes:  1085921 - Document split  and  1086181 - Subsequent implementation of document splitting

Regards,


Eli

Katari
Explorer
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Hi Eli,

Thanks a lot for your help in this matter.

Can we get complete profit center level trail balance from next fiscal year (how to update profit center for carry forwarded GL, vendor and customer balances)?

Please let me know the best approach to overcome the above scenario.

Regards,

Raman


iklovski
Active Contributor
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There is no standard way to update profit centres in the balances. You can do it only by direct tables update, which, though, technically possible, could be very tricky, as profit centres make also part of calculated indexes in FAGLFLEX* tables. If in your project there is no one who might be considered capable for this task, you can only ask support to OSS/SAP. But, of course, this would be considered as consultancy request and charged accordingly.

Answers (1)

Answers (1)

former_member198650
Active Contributor
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Hi Raman,

No need to GL migration cockpit. However, if you want to implement profit centre accounting, then you have to transfer the balances for each profit centre. Later if you have not activated document splitting, you cannot view profit centre wise financial statements.

Regards,

Mukthar

Katari
Explorer
0 Kudos

Hi Ali,

Thanks for your reply but as per the GL migration scenario 2 “Merge of FI and PCA” can we use GL migration cockpit”?

Here as per the business requirement no need the document splitting for all the B/S items we need only one default profit center.

What is the reporting issue if we implement PCA without document splitting?

May I know the use of profit center re organization?

Regards,

Raman

former_member198650
Active Contributor
0 Kudos

Hi Raman,

If you are using only one profit centre, then no issue. The issue will arise when you use multiple profit centres.

Regards,

Mukthar