Cost Centre to report P&L in SAP B1

[Former Member]

Hi - I'm about to start using Cost Centres for each of our sales teams to report their true Profit / Loss but I have found a problem.

If my sales team are doing back to back sales / purchase orders the Cost Centre report is accurate as it assigns Cost of goods sold but, if the team sell items that have been receipted without a cost centre (eg standard stock items) SAP only shows an income not an expense.

Does anyone have an answer for this?

Thanks

[Former Member]

Hi Tim,

Cost center report includes only transactions which have cost center selected. So you will have to select cost center on stock item too.

[former_member184146]

Hi Tim,

as you said items are receipted without the cost center and sold with cost center then at the time of P&L Report against that profit center it will show you only the profit because those cost were not allocated to that profit center at the time of purchasing  . thats why it is showing you only profit . if you run P&L without selecting any profit centre then you will be able to see the expense.

--Manish

[Former Member]

Kind of begs the question what's the point in having the Cost Centre functionality if it doesn't record ALL costs associated with a sale!

[former_member184146]

if you are not purchasing the item against that cost center in which you are doing sale then how come system will know that  this cost was against this cost center and how it will calculate your total expense & profit against that cost center .

[Former Member]

Hi Tim,

Any historical transactions may never be available to you new settings.

If you can make sure it happens in the future, that to me is more important.

In another word, the problem will be gone when all items receipted with a cost centre in the future.

Thanks,

Gordon