Profit Center Enduser Training Manual

CO_02 Profit Centre Accounting Version - 01 1

Saudi Arabian Airlines

PROFIT CENTRE

ACCOUNTING

CO_02

USER TRAINING MANUAL

2008 Version: 01


Profit Centre Accounting

Contents

PROFIT CENTRE ACCOUNTING.......................................................................................2

1. COURSE INTRODUCTION ......................................................................................3

2. CURRICULUM..........................................................................................................4

2.1 Pre Requisite Training ....................................................................................4

2.2 Controlling Course Curriculum........................................................................4

3. CONTROLLING PROCESS OVERVIEW .................................................................5

4. BUSINESS IMPACTS...............................................................................................6

4.1 Key Impacts ........................................................................................................6

4.2 Glossary..............................................................................................................6

4.3 Post Go Live Support Process ............................................................................6

5. PRACTICAL COMPONENT......................................................................................7

5.1 UNIT 1: PROFIT CENTER – MASTER DATA ..........................................................8

Exercise 1: Process for Creation of Profit Center – KE51.........................................9

Exercise 2: Process for Change of a Profit Center – KE52.....................................18

Exercise 3: Process for Display a Profit Center – KE53..........................................21

Unit Summary: Profit Center – Master Data............................................................23

5.2 UNIT 2: PROFIT CENTER GROUP – MASTER DATA ..........................................24

EXERCISE 1: PROCESS FOR CREATION OF A PROFIT CENTER GROUP – KCH1 ...25

Exercise 2: Process for Change a Profit Center Group – KCH2 .............................30

Exercise 3: Process for Display a Profit Center Group – KCH3 ..............................34

Unit Summary: Profit Center Group – Master Data.................................................36


1. Course Introduction

Controlling (CO) offers information to decision makers for planning, measuring and monitoring enterprise's operations and performance. It represents the internal accounting view of an organization. All data relevant to cost and revenue flows are created from various sources such as Financial Accounting (FI), Materials Management (MM) and Sales and Distribution (SD). The cost and revenue flows will update FI and simultaneously create equivalent postings into CO. As part of this process, the system assigns the costs and revenues to different CO account assignment objects like cost centers, orders, or profitability segments. The relevant accounts in FI are managed in CO as cost elements or revenue elements.


2. Curriculum

2.1 Pre Requisite Training

Course Content

SAP 01 Sap Basics and Sap Navigation Training

Accounting and Finance Managerial and Financial Accounting

2.2 Controlling Course Curriculum

CO_01 Overhead Cost Controlling

CO_02 Profit Canter Accounting


3. Controlling Process Overview


4. Business Impacts

4.1 Key Impacts

Business Process Impact

Profit Center Accounting Improved to provide visibility of an organization’s profit and losses by profit center.

4.2 Glossary

Terminology Meaning

SAP Software being used for business processes : System Application Products

4.3 Post Go Live Support Process

Contact Telephone: 4000

Email: [email protected]

LAN : http://ahd.sv.net


5. Practical Component

The following section will focus on exercises that will learn how to apply the SAP Profit Center Process to your Job.

There are a series of exercises relating to Business Scenarios, with detailed instructions and notes.

If at anytime you have any questions, please feel free to stop the Trainer and ask them questions.


5.1 Unit 1: Profit Center – Master Data

Contents:

• Exercise 1: Process for Creation of a Profit Center

• Exercise 2: Process for Change of a Profit Center

• Exercise 3: Process for Display of a Profit Center


Exercise 1: Process for Creation of Profit Center – KE51

The Enterprise contains Profit Centers at the lowest organizational unit that requires a full Income Statement. All actual and plan revenues are managed at the Profit Center level. Actual and plan costs are managed at the Cost Center level, and, through the assignment of one or many Cost Centers to a Profit Center, an income statement can be produced. Use Profit Center assessments or distributions to allocate actual and plan revenues between Profit Centers. Costs may be allocated between Profit Centers; however, this may be considered a “top side” adjustment because an allocation between Profit Centers will not be reflected in the assigned Cost Centers. Plan revenues in Profit Centres. Again, plan costs can be reported here if a Cost Center is assigned. Unlike Cost Centers, a Profit Center is active for all Company Codes assigned to a Controlling Area.

Input – Required Fields Field Value/Comments Profit center Key identifying the Profit Center. Unique within a

Controlling Area Valid to and from Name Text Person in charge Text Profit center group Hierarchy Area

Output - Results Comments Status bar message: “Profit Center XX has been created”. Tips and Tricks Use the “Copy from” functionality described below to reduce repetitive field maintenance.


1. To create a Profit Center, enter transaction code KE51 in the command box, or follow

the menu path given below from the initial SAP Easy Access screen, double clicking on the last item:

Accounting Controlling Profit Center Accounting Master Data Profit Center Individual Processing Create

2. On screen “Create Profit Center”, enter information in the fields as specified in the table

below:

Field Name

Description R/O/C

User Action and Values Comments

Profit center

Key that uniquely identifies this Profit Center in the Controlling Area

R Establish a Profit Center naming convention.

Copy from Profit center

Source Profit Center master record to be copied.

C Enter the name of the profit center master record that will serve as a model for the new profit center master record.

Controlling Area

Uniquely identifies a controlling area.

C

(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional) 3. Click on the ENTER or Press “Master Data” Icon.

Press “Enter” or Click on “Master Data”


4. On screen “Create Profit Center: Basic Data Tab”, enter information in the fields as specified in the table below:


5. On screen “Create Profit Center: Company Code Tab”, select the companies in the fields as specified in the table below:

Select “Company Code” Tab


6. On screen “Create Profit Center: Address Tab”, enter information in the fields as specified in the table below:

Select “Address” Tab


7. On screen “Create Profit Center: Communication Tab”, enter information in the fields as specified in the table below:

Select “Communication” Tab


8. On screen “Create Profit Center: History Tab”, view the information in the fields as specified in the table below:

Field Name Description R/O/

C User Action and Values Comments

Basic Data Tab

Profit Center R Defaulted by the system from the initial screen.

Status R Defaulted by the system. Examination Period … To

Dates indicating as of when an entry is valid.

R

Name Text description of the new profit center.

R This field is displayed in the Profit Center Standard Hierarchy.

Description Long text description of the new profit center.

O

Select “History” Tab


Basic Data Tab

Person in charge

Profit Center Manager

R Text

Department Department O Text . Profit center group

Hierarchy Area R Enter an end node from the Profit Center Standard Hierarchy.

Indicators Tab

Dummy Profit Center

This flag determines whether the profit center is defined as the dummy profit center for the controlling area.

O To activate the field, double click on it. The pop window will prompt you to activate/deactivate the flag.

Lock indicator

Indicator O Activate / Deactivate this indicator using one mouse click to block / unblock the Profit center from future postings.

Company Codes Tab

Assigned Check the company codes for which the profit center can receive postings

R Check box


9. To save profit center in inactive status, click on SAVE button. The message "Profit

Center XXXX saved in inactive status" will appear.

10. To save profit center in active status, click the Activate button or Shift + F1. The

message "Profit Center XXXX has been created" will appear on the lowest pane of the screen.

Click on “Save” Button


Exercise 2: Process for Change of a Profit Center – KE52


Controlling Area Valid from (Valid) to Name Text Person in charge Text Profit center group Hierarchy Area

Output - Results Comments Status bar message:

1. To change a Profit Center, enter transaction code KE52 in the command box, or follow


Accounting Controlling Profit Center Accounting Master Data Profit Center Individual Processing Change

2. On screen “Change Profit Center”, enter information in the fields as specified in the table below:

Field Name

Description R/O/C


Profit center



(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)


3. Click on ENTER or MASTER DATA button. 4. On screen “Change Profit Center”, change information in the fields as specified in the

table below:

Field Name

Description R/O/C

User Action and Values

Comments

Basic Data Tab

Profit Center

R Defaulted by the system from the initial screen.

Status R Defaulted by the system.

Examination Period … To

Dates indicating as of when an entry is valid.

R


Name Text description of the new profit center.

R This field is displayed in the Profit Center Standard Hierarchy.

Description

Long text description of the new profit center.

O

Basic Data Person in charge

Profit Center Manager R Text

Department

Department O Text .

Profit center group

Hierarchy Area R Enter an end node from the Profit Center Standard Hierarchy.

Indicators Tab

Dummy Profit Center

This flag determines whether the profit center is defined as the dummy profit center for the controlling area.

O To activate the field, double click on it. The pop window will prompt you to activate/deactivate the flag.

Lock indicator

Indicator O Activate / Deactivate this indicator using one mouse click to block / unblock the Profit center from future postings.

Company Codes Tab

Assigned Check the company codes for which the profit center can receive postings

R Check box

5. To save changes in a profit center in inactive status click on SAVE button. The

message "Profit Center XXXX saved in inactive status" will appear. 6. To save changes in a profit center in active status, click the Activate button or Shift +

F1. The message "Profit Center XXXX has been created" will appear on the lowest pane of the screen.


Exercise 3: Process for Display a Profit Center – KE53


Controlling Area

Output - Results Comments Display of profit center master data.

1. To display a Profit Center, enter transaction code KE53 in the command box, or follow


Accounting Controlling Profit Center Accounting Master Data Profit Center Individual Processing Display

2. On screen “Display Profit Center”, enter information in the fields as specified in the table below:

Field Name

Description R/O/C


Profit center





3. On screen “Display Profit Center”, view the information in the fields as specified in the table below:

4. Click the green back arrow (F3) or the yellow up arrow (Shift-F3) to exit the display

screen after you have completed your review of the profit center master data.

Press “Green Arrow” to Exit


Unit Summary: Profit Center – Master Data

After completing this unit, you should be able to

• Create, Change and Display a Profit Center


5.2 Unit 2: Profit Center Group – Master Data

Contents:

• Exercise 1: Process for Creation of a Profit Center Group

• Exercise 2: Process for Change of a Profit Center Group

• Exercise 3: Process for Display of a Profit Center Group


Exercise 1: Process for Creation of a Profit Center Group – KCH1

The standard hierarchy is a profit center group, or tree structure, which contains all the profit centers in one controlling area. The standard hierarchy usually corresponds to the organizational structure used in Profit Center Accounting.

The standard hierarchy consists of two types of nodes:

• A profit center area is an end node in the structure, which is not the top node. You can only assign your profit centers to the end nodes of the structure.

• A summarization area groups together profit center data at a higher level. Each

node of the standard hierarchy, which is not an end node, is a summarization area. You cannot assign profit centers directly to a summarization area. It merely groups together the profit center areas and summarization areas which lie below it.

In addition to the standard hierarchy for your controlling area, you can also create alternative profit center hierarchies -- so-called "profit center groups" -- for use in the information system, allocations and planning.

In contrast to the standard hierarchy, these profit center groups do not have to contain all the profit centers in the controlling area. On the contrary, profit center groups let you select only certain profit centers and reorganize them to allow you more flexibility.

Input – Required Fields Field Value/Comments

Profit center group Key identifying a profit center group. Unique in a controlling area.

Output - Results Comments

Structure saved.


1. To create a Profit Center Group, enter transaction code KCH1 in the command box, or follow the menu path given below from the initial SAP Easy Access screen, double clicking on the last item:

Accounting Controlling Profit Center Accounting Master Data Profit Center Group Create

Accounting Controlling Profit Center Accounting Master Data Standard Hierarchy Create

2. On screen “Create Profit Center Group”, Initial Screen”, enter information in the fields as specified in the table below:

Field Name Description R/O/

C User Action and

Values Comments

Profit center group

The name of a node in hierarchically structured groups. The group name may be a maximum of 10 characters in length.

R Enter the name of the node that you wish to change

The group name must be unique

Reference Profit center group

The name of a node in hierarchically structured groups that you want to use as a model for creating a new one.

O

Controlling area

O


Hit on “Hierarchy” Icon or Press Enter to proceed


3. Press ENTER or Press “Hierarchy” Icon to proceed. 4. On screen “Create Profit center group: Structure”, add a new node to a top node or sub

node by entering information in the fields as specified in the table below:

Field Name

Description R/O/C


Set ID The group name. R Enter a unique name here or select an existing group from the list of possible entries.

Short text

Text. O

4.1. Mark the top node or sub node (source node) that will be directly Superior to the new node.

4.2. Click on the Lower level button to add a sub node that will be inferior to the source node.

4.3. Enter the name of the new node in the Set ID field or select a group from the possible entries list.

4.4. Enter a short text description of the new node in the Short text field.

4.5. Save the changes by clicking on the Save button. The message “Changes were saved” should appear in the Status Bar.


5. On screen “Create Profit center group: Structure”, add profit centers to an end node by entering information in the fields as specified in the table below:

Field Name

Description R/O/C


From Value

A profit center R Enter a profit center value or the start interval of a range of profit centers.

To value A profit center O Enter the end interval of a range of profit centers

5.1. Mark the end node that the profit centers will be assigned to using one mouse click. Profit centers cannot be assigned to nodes that are not end nodes.

5.2. Click on the insert values button. 5.3. If a single profit center, enter the name (value) within the value field or

select the profit center from the list of possible entries. If a range of profit centers, enter the start interval here.

5.4. Conditional – enter the end interval of a range of profit centers here. 5.5. Save the changes by clicking on the Save button. The message

“Changes were saved” should appear in the Status Bar.


6. On screen “Create Profit center group: Structure”, revoke the relationship of a sub node to its superior node:

6.1. Mark the target sub node using one mouse click. 6.2. Select the target node by clicking on the Select button. 6.3. Revoke its relationship by clicking on the Revoke relationship (Remove)

button or press F5. 6.4. Save the changes by clicking on the Save button. The message”

Changes were saved” should appear in the Status Bar.

7. On screen “Create Profit center group: Structure”, revoke the relationship of a profit center value or interval to its end node:

7.1. Mark the target value or interval using one mouse click. 7.2. Select the value or interval by clicking on the Select button. 7.3. Revoke its relationship by clicking on the Revoke relationship (Remove)

button or press F5. 7.4. Save the changes by clicking on the Save button. The message



Exercise 2: Process for Change a Profit Center Group – KCH2


Input – Required Fields Field Value/Comments

Profit center group Key identifying a profit center group. Unique in a controlling area.

Output - Results Comments Structure saved.

1. To change a Profit Center Group, enter transaction code KCH2 in the command box, or

follow the menu path given below from the initial SAP Easy Access screen, double clicking on the last item:

Accounting>Enterprise controlling>Profit center accounting>Master data>Profit center group>Change

2. On screen “Change Profit center group: Initial Screen”, enter information in the fields as

specified in the table below:

Field Name

Description R/O/C User Action and Values Comments

Profit center group

A hierarchy node R Enter the name of the node that you wish to change

(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional) 3. Press ENTER or Press “Hierarchy” Icon to proceed


4. On screen “Change Profit center group: Structure”, add a new node to a top node or sub node by entering information in the fields as specified in the table below:

Field Name

Description R/O/C


Set ID The group name. R Enter a unique name here or select an existing group from the list of possible entries.

Short text

Text. O

4.1. Mark the top node or sub node (source node) that will be directly superior to

the new node. 4.2. Click on the Lower level button to add a sub node that will be inferior to the

source node. 4.3. Enter the name of the new node in the Set ID field or select a group from

the possible entries list. 4.4. Enter a short text description of the new node in the Short text field. 4.5. Save the changes by clicking on the Save button. The message “Changes

were saved” should appear in the Status Bar.


5. On screen “Change Profit center group: Structure”, add profit centers to an end node by entering information in the fields as specified in the table below:

Field Name

Description R/O/C

User Action and Values

Comments

From Value

A profit center R Enter a profit center value or the start interval of a range of profit centers.

To value A profit center O Enter the end interval of a range of profit centers

5.1. Mark the end node that the profit centers will be assigned to using one mouse click. Profit centers cannot be assigned to nodes that are not end nodes.

5.2. Click on the Profit Center button. 5.3. If a single profit center, enter its name (value) within the value field or

select the profit center from the list of possible entries. If a range of profit centers, enter the start interval here.

5.4. Conditional–enter the end interval of a range of profit centers here. 5.5. Save the changes by clicking on the Save button. The message “Changes

were saved” should appear in the Status Bar.


6. On screen “Change Profit center group: Structure”, revoke the relationship of a sub node to its superior node:

6.1. Mark the target sub node using one mouse click. 6.2. Select the target node by clicking on the Select button. 6.3. Revoke its relationship by clicking on the Revoke relationship button. 6.4. Save the changes by clicking on the Save button. The message”

Changes were saved” should appear in the Status Bar.

7. On screen “Change Profit center group: Structure”, revoke the relationship of a profit center value or interval to its end node:

7.1. Mark the target value or interval using one mouse click. 7.2. Select the value or interval by clicking on the Select button. 7.3. Revoke its relationship by clicking on the Revoke relationship button. 7.4. Save the changes by clicking on the Save button. The message



Exercise 3: Process for Display a Profit Center Group – KCH3


Input – Required Fields Field Value/Comments Profit center group Key identifying a profit center group. Unique in a controlling

area.

Output - Results Comments

Structure displayed.

1. To display a Profit Center Group, enter transaction code KCH3 in the command box, or follow the menu path given below from the initial SAP Easy Access screen, double clicking on the last item:

Accounting>Enterprise controlling>Profit center accounting>Master data>Profit center group>Display

2. On screen “Display Profit center group: Initial Screen”, enter information in the fields as

specified in the table below:


Field Name

Description R/O/C


Profit center group

A hierarchy node R Enter the name of the node that you wish to change


3. Process End


Unit Summary: Profit Center Group – Master Data

After completing this unit, you should be able to

• Create, Change and Display a Profit Center Group

Profit Center Enduser Training Manual

Documents

profit center exercise

sap profit center process

profit center level

profit center assessments

profit center ke52

profit center ke53

profit centers

profit center group