SAP ERP Financials and FICO Handbook

262 CHAPTER 6 FICO QUICK TOUR
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This module tracks internal profit generated by various
responsibility centers. You can map your product, branches, and
functionality as a profit center. This is a management-oriented
approach from the control point of view.
You can transfer certain balance sheet items, which along
with cost and revenue give you important ratios like return on
investment (ROI).
The cost center profit center master contains header
information, basic data, group assignment, and validity period.
Since a profit center is a component of enterprise CO, by
default a profit center is valid for all company codes assigned to
a controlling area. However, you can limit this by deselecting
company code assignment.
Assets, cost centers, business processes, IOs, projects,
production orders, and cost objects have a field for profit
center assignments in their master records. When you post any
transaction to one of these objects, the profit center is populated
with data.
Based on configuration, PCA facilitates profit center valuation.
When a goods movement takes place between profit centers, it
can be treated as a sale in PCA and the goods valued based on
either legal valuation or profit center valuation.
If the selling profit center and the buying profit center belong
to the same company code, then valuation takes place based on
profit center valuation. Otherwise, legal valuation is used.
In profit center valuation, you can determine the transfer price,
which is generally cost + margin.
Profit center accounts get their data from FI and CO posting in
the following ways:
n All postings for revenue and cost elements (assignment to profit
center using CO account assignment object)
n Expense and revenue accounts that are posted using logistic
transactions