Avoid PCA Reporting Problems When Using Different Companies for Sales and Delivery

  • by Kees van Westerop, Senior SAP Consultant, Kwest Consulting
  • June 15, 2004
Inaccurate profit center accounting (PCA) reports can result from using profit centers incorrectly for triangular sales orders. The author demonstrates how to avoid this situation by pointing out some common mistakes and providing tips on setting up profit centers correctly.

Recently I was working for a company that wanted to use profit center accounting (PCA) for its product-related financial reports. To its surprise, the company discovered that the reports were inaccurate.

The cause turned out to be a combination of incorrect use of profit centers for its triangular sales orders combined with the standard SAP settings. A triangular sales order for this company is a sales order registered in Company A to be delivered by Company B. Figure 1 shows why this is called a triangular sales order. In triangular sales orders, the delivering and selling company may reside in one country. The country names have been added to the figure to illustrate the example used in this article.

Figure 1
lustration of a triangular sales order

Kees van Westerop

Kees van Westerop has been working as an SAP consultant for more than 25 years. He has an MBA degree in mathematics and a degree in finance. Kees has been concentrating on the financial modules, especially in general ledger accounting, cost center accounting, and consolidation. He also has a great deal of experience with rollouts of kernel systems and integrating finance and logistics.

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