profit center standard hierarchy

Profit center Accounting helps the organization to analyze the internal profitability of the business. Standard hierarchy is a tree like structure under which all profit centers are grouped together .Standard hierarchy is not manually created it is automatically generated while customizing controlling area settings in 0KE5

Here lets assume our company Sunrise ltd want to track performance in two major areas

• Administration

• logistics
  

TO MAINTAIN PROFIT CENTER GROUPS IN STANDARD HIERARCHY

T CODE:KCH1

PATH:SPRO>SAP REFERENCE IMG>CONTROLLING>PROFIT CENTER ACCOUNTING>MASTER DATA>PROFIT CENTER>DEFINE PROFIT CENTER GROUPS.

CREATE PROFIT CENTER STANDARD HIERACHY

T CODE:KE51

PATH:SPRO>SAP REFERENCE IMG>CONTROLLING>PROFIT CENTER ACCOUNTING>MASTER DATA>PROFIT CENTER>DEFINE PROFIT CENTER.

Lets assume our company Sunrise pvt ltd is structured like this;

Administration

• FIN(Finance)

• HR(Human Resource)

  
  

Logistics

• PRO(Production)

• PUR(Purchase)

  
  

Creation of Finance Profit Center

Creation of HR Profit Center

Creation of Production Profit Center

Creation of Purchase Profit Center

After doing all the profit center groups along with profit centers the hierarchy looks like this;

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