Use a Standard BTE to Curb Dummy Profit Center Postings in EC-PCA

  • by R. Venkat Balaji, SAP Finance Consultant
  • April 8, 2015
Learn a way of using a standard business transaction event (BTE) to reduce the number of postings to the dummy profit center and the consequent need to reclass these (incorrect) postings. Organizations that have implemented the classic general ledger and have activated Profit Center Accounting (EC-PCA) are advised to implement this BTE to significantly curtail the dummy profit center postings and, more importantly, avoid any discrepancies between the classic general ledger and the EC-PCA ledger.
Learning Objectives
After reading this article, you will know how to:
  • Derive profit centers and populate them in various scenarios
  • Complete the configuration steps necessary to derive the appropriate profit center
  • Use a standard business transaction event (BTE) to maintain the necessary profit centers on a company code or general ledger (GL) account level
Key Concept
Profit center determination depends on accurate data entry and master data mapping, as well as completing several steps in the configuration. If one or more of these steps are incomplete, then the document posts to a dummy profit center configured in the system. It is a general practice to review all the dummy profit center postings at month end and reclassify them to the correct profit center so that you end up with complete, accurate Profit Center Accounting (EC-PCA) reporting that reflects the same picture as that of the SAP General Ledger. If your postings are entered to the correct profit center in the first place, you do not need to spend additional time and effort reclassifying incorrect entries.
The Profit Center Accounting (EC-PCA) module is a statistical component that allows summarization of profit and loss (P&L) and balance-sheet data according to profit centers. These profit centers usually reflect the internal structure of areas of responsibility within a particular organization, thereby allowing profit calculation of a company within a company. EC-PCA data in some form is frequently used for external or internal reporting. Therefore, the data in this ledger needs to be accurate and complete.                                  

The Technical Mechanics of Profit Center Determination

The system has a standard algorithm that takes into account the hierarchical priority of profit center determination. The profit center is assigned either dynamically, based on certain characteristics in the document, or indirectly, based on assignments in a preceding document (e.g., a goods receipt takes into account the assignment on the purchase order). It is important to keep in mind that in the former scenario, the currently assigned profit center is always used, but in the latter scenario, any assignment changes after the date of the preceding document are not considered.

For every posting, you need to complete several checks before posting the document in the final profit center. I describe these checks in order of priority.

The first check is to verify whether the profit center has been entered manually by the user. The user enters a profit center in the line item of the transaction, such as through transaction code FB50 (journal entry), FB60 (non-purchase order [PO] vendor invoice), or MIRO (PO vendor invoice). The system then determines whether an input value has been entered in that field.

The second check is substitution maintenance. To complete this check, execute transaction code GGB1. The system then checks to determine if there are substitution rules set up in the system to default profit centers. Figure 1 shows a sample substitution rule used to default profit centers based on certain prerequisite criteria.


Figure 1
A sample substitution rule
 

R. Venkat Balaji

R. Venkat Balaji is a seasoned SAP finance consultant who has been a part of several implementations, upgrades, and support roles at various organizations in the public and private sector.

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