Are My A/R and A/P Figures in PCA Wrong?

  • by Dr. Stef G.M. Cornelissen, MBA, SAP Business Consultant, Sperry Partners BV
  • May 15, 2004
Discrepancies between FI and Profit Center Accounting (PCA) figures often confuse even the most experienced controllers. The author shows how the transfer of balance sheet A/P and A/R accounts from FI to PCA can produce unexpected and bewildering results. He also explains the logic used to obtain PCA data.
In numerous projects, I have been asked to sort out differences between Profit Center Accounting (PCA) and FI figures and apparent mistakes in PCA reporting. SAP logic at times can be confusing, even to experienced controllers. The issue centers on balance sheet A/P and A/R accounts that are transferred periodically from FI to PCA via transaction 1KEK. They are treated differently than normal P&L accounts or balance sheet accounts that are directly linked to PCA via customizing transaction 3KEH.

Most companies transfer A/R and A/P open items at month-end using transaction 1KEK. Checking during the first posting period does not raise many questions: The G/L is in line with PCA line items and totals. However, once the second month-end is completed, differences appear out of nowhere and this continues during the whole year. PCA line items are not in line with totals anymore and the link with G/L seems dubious. The same type of confusion crops up during month-end allocations: "All reports look OK. But when we run 4KE5 (PCA distribution) in test mode, either cumulative or iterative, I get strange numbers. Therefore we did not run the distribution, but rather made a manual journal entry to reclassify."

Dr. Stef G.M. Cornelissen

Dr. Stef G.M. Cornelissen, MBA, is an experienced international SAP business consultant from the Netherlands with certifications in FI, CO, and SD. He took part in important international projects involving the large Dutch multinationals. Before specializing in SAP, he worked as a management consultant and was a senior advisor to the Board of Directors of the University of Nijmegen. Stef's academic background is in business administration, economics, and organizational science. He is the owner of Bowstring BV and principal partner at Sperry Associates.

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