No:826357Symptom

You want to know

o How the Profit Center Accounting (PCA) is mapped within the new General Ledger (G/L) Accounting

o To what extent you can continue to use the classic Profit Center Accounting when you use the new G/L accounting in parallel

Other terms

New general ledger, NewGL, profit center, PCA, document splitting, document split, T8A30,SAPF180, SAPF180A, SAPF100, RCOPCA49, IAOM 028, KECRMPCA 001

Reason and Prerequisites

You want more information about using Profit Center Accounting.

Solution

For release SAP ERP, the Profit Center Accounting was integrated into the new G/L accounting. The solution is as follows:

o SAP delivers the 'Profit Center' and the 'Partner Profit Center' as fixed characteristics that are posted on the original FI postings. The data is not updated, as required, in another ledger, as in the classic Profit Center Accounting.

o As a result of integration of the Profit Center Accounting into the new G/L accounting, new functions such as "document splitting" are available. Using the 'Document Splitting' function (online document split), you can create balance sheets for company codes as well as for other entities such as the profit center. The balance is then set to 0 for each document for the profit center.

o Integrating classic G/L accounting and classic Profit Center Accounting into the one application also removes the time and effort required.

When implementing the new G/L accounting in Release SAP ERP, we recommend that all new customers map the Profit Center within the new G/L accounting by activating the scenario FIN_PCA (profit center update). The parallel activation of classic Profit Center Accounting in addition to updating parallel data volumes does not make sense, for reasons that will be discussed in the following section.

Detailed information about setting Profit Center Accounting in the New General Ledger:

o Define the update of the characteristics 'Profit Center' and 'Partner Profit Center' in the ledger by selecting the scenario 'Profit center update' (Customizing: Financial Accounting (New) -> Financial Accounting Basic

Settings (New) -> Ledgers -> Ledger -> Assign Scenarios and Customer-Defined Fields to Ledgers).

o If you want to use the document splitting, you can define the 'Profit center' field as a splitting characteristic in the document splitting (Customizing: Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions -> Document Splitting -> Define Document Splitting Characteristics for General Ledger Accounting). Set the 'Zero balance' indicator again for the added field 'Profit Center'. You can now create balance sheets on the profit center. You must also activate the Mandatory Field check to ensure that the profit center is set in all postings. If you want to display balance sheet items at profit center level (for example, receivables and payables) but you do not require complete balance sheets, we recommend that you do not set the 'Zero balance' and 'Mandatory Field check' indicators.

If you already used classic Profit Center Accounting as an SAP R/3 customer but you now want to use Profit Center Accounting in the new general ledger, you can continue to use classic Profit Center Accounting in parallel to the profit center update scenario in the new G/L accounting in the interim. However, we do not recommend you do this on a long-term basis due to the increased data volume and the increased time and effort required, and in the case of active document splitting, the update response changes.However, if the classic Profit Center Accounting continues to play a leading role for you, we recommend that you do not activate the document splitting in the new G/L accounting, and not for other entities such as the segment either. A reason for this is that the classic Profit Center Accounting uses certain functions of the classic general ledger that are no longer available with active document splitting (for example, balance sheet adjustment - see Note 981775). Another reason is that when you use transactions such as 3KEH, FAGL3KEH or FI substitution to set proposal profit centers, this prevents the setting of profit centers due to document splitting (for example, when reading a profit center from the source document or reference document).

See the following information for details about the differences between the function of PCA in new G/L accounting and in classic PCA and for details about the effects of new G/L accounting on the posting behavior in classic PCA. Even if mapped into new G/L accounting, PCA always occurs within a controlling area. SAP does not support cross-controlling area PCA.

1. Setting proposal profit centers for line items

Classic Profit Center Accounting start situation:

           There are different options to set a proposal profit center in the SAP system: Manual entry (if the transaction supports this), FI substitution, PCA transactions 3KEH/3KEI The derived proposal profit center is also updated in the line item table of classic general ledger accounting, but is not significant due to non-existing evaluation options. Transactions 3KEH or 3KEI have an additional meaning for classic Profit Center Accounting. They control if certain balance sheet accounts and retained earnings accounts are updated in the tables of classic Profit Center Accounting.

New general ledger accounting without document splitting:

           There are different options to set a proposal profit center: Manual entry (if the transaction permits this), FI substitution, implementation of the BAdI AC_DOCUMENT (for postings using the accounting interface only, for example, MM, SD postings), PCA transactions 3KEH or 3KEI

           Transactions 3KEH and 3KEI also exist in mySAP ERP2004 and function in the same way as in R/3 (in other words, classic Profit Center Accounting must be active as a prerequisite). You can use the settings in transaction 3KEH to control the update in classic Profit Center Accounting, and the transactions set a proposal profit center where required. Keep in mind that the profit center information is therefore affected in new G/L accounting by settings in classic Profit Center Accounting.

           In Release ERP2005, transactions 3KEH and 3KEI from classic Profit Center Accounting are NO longer used to set a proposal profit center. The entries of transaction 3KEH control ONLY the transfer of line items to classic Profit Center Accounting. Transaction 3KEI is no longer relevant. In addition, the new transaction FAGL3KEH and the BAdI FAGL_3KEH_DEFPRCTR are available for maintaining proposal profit centers. You can use these new functions to determine a proposal profit center depending on the company code and the account. Note that this proposal profit center does not appear on the input screen; it is derived only when you post the document. The proposal profit center is used if the line item does not contain a CO account assignment and if the profit center was not already determined elsewhere.

! See the changes from Note 1241741.

New general ledger accounting with document splitting:

           The options described under the "New general ledger accounting without document splitting" section are also available to you. However, depending on the account, the use of the function is critical and must be well considered. As these proposal profit center derivations (and also segment derivations) take place before the "document splitting" (online document split), document splitting is sometimes prevented. For this reason, NEVER set a proposal profit center IN ACCOUNTS in which you expect an account assignment by document splitting.  These accounts include in particular OI-managed accounts, that is customers/vendors and also OI-managed G/L accounts, for example, goods receipt accounts or invoice receipt clearing accounts (GR/IR accounts). Note that document splitting also overwrites an actual dummy profit center. Use a default profit center instead, which you create with the normal default transaction for profit centers.! See the changes from Note 1241741.

2. Derivation of the partner profit center

Release SAP ERP 2004:

           Profit center scenario in the new G/L accounting is active, classic Profit Center Accounting is not active: Transactions 8KER/8KES are no longer available. Notes 997925 and 1087350 provide the functions from transaction OCCL. Alternatively, you can use the BAdI AC_DOCUMENT to set the partner profit center.

           Profit center scenario in new G/L accounting and classic PCA is active: Transactions 8KER/8KES and OCCL (reading purchase order/sales order for affiliated companies) are active.  However, we recommend that you no longer use transaction 8KER or 8KES. Partner profit centers derived using these transactions are available in both classic Profit Center

Accounting and in New General Ledger Accounting only if the line is relevant in classic Profit Center Accounting.

Release SAP ERP 2005:

           Profit center scenario in the new G/L accounting is active, classic Profit Center Accounting is not active: Transactions 8KER/8KES are no longer available. Notes 997925 and 1087350 provide the functions from transaction OCCL. Alternatively, you can use the BAdI AC_DOCUMENT or the new BAdI FAGL_DEFPPRCTR (enhancement spot FAGL_LEDGER_CUST_DEFPRCTR) with the method SET_DEFAULT_PART_PRCTR to set the partner profit center.

           Profit center scenario in new G/L accounting and classic PCA is active: Transactions 8KER/8KES and OCCL are active. However, we recommend that you no longer use transaction 8KER or 8KES because partner profit centers derived using these transactions are available in both classic Profit Center Accounting and in New General Ledger Accounting only if the line is relevant in classic Profit Center Accounting. Instead, if required, you should use the BAdI FAGL_DEFPPRCTR to set the partner profit center. A partner profit center determined in this way is always updated both in new G/L accounting and in classic Profit Center Accounting.

3. Displaying receivables and payables for each profit center

Document splitting is active

           The detailed information from the general ledger view about receivables and payables split online from the document splitting is NOT available for classic Profit Center Accounting.

           If the business area is not defined as a document splitting characteristic, you can use Note 981775 to execute the reports for balance sheet adjustment (SAPF180*). This means that you can use transaction 1KEK to transfer receivables and payables to classic Profit Center Accounting. However, the old foreign currency valuation function (transaction F.05, the report SAPF100) is no longer available if new general ledger accounting is active. As a result, transaction 1KEK copies only the original receivables/payables, independently of transaction 2KEM "Account Valuation Differences"; in other words, the original data is not corrected by the valuation differences.

           The profit and loss adjustment (the report SAPF181, transaction F.50) is not possible as CO objects are adjusted that can be directly or indirectly (for example, using the profit center) adjusted by document splitting also. Follow-up costs split according to source can be transferred online to the classic Profit Center Accounting because these are already available in the data entry view.

Document splitting is not active

           In this case, you CANNOT display the receivables and payables according to source at profit center level within the new G/L accounting. However, you can use the old split of the receivables and payables within the classic Profit Center Accounting (transaction F.5D) as well as of the follow-up costs (transaction F.50), and you can use the periodic transfer of receivables and payables using transaction 1KEK. However, you can execute the new report for the foreign currency valuation of the open items (report FAGL_FC_VALUATION) with depreciation areas only, which means that the documents are no longer updated (valuation

difference not updated in BSEG-BDIFF). As a result, transaction 1KEK copies only the original receivables/payables, independently of transaction 2KEM 'Account Valuation Differences'; in other words, the original data is not corrected by the valuation differences.

           You can use the standard report groups 8A98 and 8A99 to display the open receivables and payables in classic Profit Center Accounting.

4. Periodic transfers of asset portfolios to classic Profit Center Accounting

              As of Release 4. 7, it is possible to map a parallel reporting mapped in FI (for example, parallel accounts) for parallel depreciation areas in Asset Accounting by using particular settings (defining an accounting principle). You must stop the execution of transaction 1KEI because it would result in duplicated data in PCA because of postings to the same accounts. You must also stop transaction 1KEI with a 'different company code' or a 'different depreciation area in the different company code' because the data cannot be transferred correctly. Transaction 1KEI terminates with the error message KM 764. As of Release SAP ERP, if the new general ledger accounting is active, the system issues the message FAGL_LEDGER_CUST 076.

5. Dummy profit center on P&L accounts

              You use transactions 3KEH and 3KEI to firstly try to determine a proposal profit center in classic Profit Center Accounting for document line items with a P&L account (no cost element) and without a profit center account assignment. If the system does not find a proposal profit center, the dummy profit center is set for some activities (primarily from Logistics). If the new G/L accounting is active AND if at least one of the two characteristics 'Profit Center' and 'Segment' is used in the document splitting, the routine for setting the dummy profit center will no longer run (see Note 820121 and 832776). Otherwise the document splitting would not split a document, or not split it correctly.  The system must then find the profit center that is valid for the process using the document splitting or another derivation. If this is not the case, the document line item will not be updated in the classic Profit Center (document line items with Profit Center initial are not allowed in the classic Profit Center Accounting).

! See the changes from Note 1241741.

6. PCA additional rows

              If you map Profit Center Accounting in new General Ledger Accounting in SAP ERP, you can use consulting note 937872 to update PCA additional lines recognized from classic Profit Center Accounting in new General Ledger Accounting.

              If you use the transfer price functions, you do not require Note 937872 because the structure of the PCA additional lines are technically "true" and are automatically posted in new General Ledger Accounting when maintained in transaction 0KEK.

7. Substitution of profit centers in sales orders

              Transactions 0KEL and 0KEM are available both in the classic Profit Center Accounting and in the new G/L accounting (Customizing: Financial Accounting (New) -> General Ledger Accounting (New) -> Tools -> Validation/Substitution)

8. Reporting

Line item reporting within the new G/L accounting

           Release SAP ERP 2004: Even if document splitting is set with the characteristic Profit Center, only one restricted line item reporting to profit centers is available in this release at present. When you use the G/L account line item list of FI, you can limit profit centers for line item settlement G/L accounts that are not relevant for the document splitting. As of Support Package 10, line item reporting to profit centers and segments is available.

           Release SAP ERP 2005: Line item reporting according to profit centers and segments is available.

Ledger reporting within the new G/L accounting

           Release SAP ERP 2004: Even if the document splitting is set with the characteristic profit center or segment, no current account reporting to profit centers and segments is available up to Support Package 10.  With Support Package 10, current account reporting according to profit centers and segments is available. Also see the detailed explanations for Release SAP ERP 2005.

           Release SAP ERP 2005: Current account reporting according to profit centers and segments is available. It replaces the standard report groups 8A98/8A99 in earlier releases. However, the difference is that the foreign currency valuation correction is no longer displayed for each item because no update of the valuation in items occurs through the foreign currency valuation in the new general ledger (no BDIFF/BDIFF2 update). It is a key date-related valuation (mostly for the period end).

Transferring the report from EC-PCA to the new general ledger

           Enhancement Package 3 provides the option to copy the Report Painter summary reports and Report Writer summary reports to a library of the new general ledger. Transaction FAGL_RMIGR is provided for this purpose. See the following note about this topic:1490811 FAGL_RMIGR not for line item reports

9. Transfer prices

              The transfer price functions (multiple valuations) are available for new General Ledger Accounting as of SAP ERP 2005. In SAP ERP 2004, you can use the functions of the transfer prices or parallel valuation only if you have activated the classic General Ledger and classic Profit Center Accounting.

10. Creating the profit center standard hierarchy

Release SAP ERP 2004: You must create the highest node of the standard hierarchy in the Customizing of the classic Profit Center Accounting (transaction 0KE5), even if you are not using classic Profit Center Accounting.

Release SAP ERP 2005: To create the highest node of the standard hierarchy, use transaction SM30 with the maintenance view V_FAGL_PC_STHR.

11. Using the dummy profit center

              Problem: The dummy profit center is not found. This is the case if the function module COPCA_ACTIVE_ACT for the check for active Profit Center Accounting (PCA) confirms that PCA is not active. To ensure that PCA is recognized as active, the active indicator must be set in transaction 0KE5 AND transaction 1KEF must contain a valid entry for the fiscal year. Message KM 586 can be set in Customizing.

Classic Profit Center Accounting is active (regardless of whether classic G/L accounting or new G/L accounting is active):

           If the classic Profit Center Accounting is active, you must create a dummy profit center to avoid postings with an initial profit center in the database tables of the classic PCA.

           If the new G/L accounting is also active AND if you are using at least one of the two characteristics 'Profit Center' and 'Segment' in the document splitting, you have to ensure in Release SAP ERP 2004 that Notes 820121 and 832776 are included.  In Release SAP ERP 2005, the changed posting logic is included from the beginning.  Note that the update of document line items in classic Profit Center Accounting is omitted because of this.

Classic Profit Center Accounting is not active, New G/L Accounting is active and you are using at least one of the two characteristics 'Profit Center' and 'Segment' in the document splitting:

           You do not have to create and use a dummy profit center.  Using the dummy profit center can cause situations you want to avoid: For example, the system splits receivables/payables to the dummy profit center because of the document splitting (you cannot transfer them manually), or a document line item with dummy profit center account assignment is not split by the document splitting.  To ensure that a profit center is assigned in all rows, set the profit center as mandatory field in the Customizing of the document splitting.  However, note that this can also lead to terminations while posting, if a profit center assignment is missing.

           Due to Note 817587, the actual dummy profit center was overwritten by the document splitting. If you work with the document splitting and intentionally want to use dummy profit centers as profit center assignments, we recommend that you do NOT use the actual dummy profit center. Use the default profit center instead; this means you should use the normal profit center (created using transaction KE51) that is recognized as default due to its description. The dummy profit center should only indicate postings that are incorrect (such as account assignments that are not made using standard transactions, substitutions, and so on).

12. Compare G/L Accounts in FI with Profit Center Accounting (Transaction KE5T)

              In classic Profit Center Accounting, transaction KE5T is used to compare account balances in PCA and FI. In transaction KE5T, the ledgers to be compared are fixed. If new G/L accounting is active in your system, use the more general transaction GCAC. You can enter any base ledger and any comparison ledger.

              There is currently no replacement for transaction KE5U used in the Euro conversion. To correct minor differences due to the Euro conversion, you must enter manual postings in PCA.

13. Real-time integration of CO postings in the new general ledger

              When you use the real-time integration in the new general ledger, you cannot transfer the intercompany clearing accounts to classic Profit Center Accounting (as described in consulting note 309987).

14. Migration

              If you are in a migration, see the following notes:

    1241741 Problems with 3KEH/FAGL3KEH, in particular migration phase 1       !!! This note replaces Notes 1138325           and 1133659, among others.    1138325 3KEH in phase 1 (migration)    1138208 Profit center derivation in phase 1 (migration)    1133659 Deriving default profit center in phase 1 (migration)

15. CRM integration

              If the General Ledger Accounting (new) is active and you use the profit center scenario in the General Ledger Accounting (new), the system may issue error messages because no dummy profit center is found. The reason is that, in the process of determining the profit center, the dummy profit center from the classic Profit Center Accounting is set as a valid profit center as the last option. As no other function is available for finding a dummy or a default profit center, you have to create the real dummy profit center in connection with CRM integration using Customizing for the classic Profit Center Accounting.

16. ALE scenarios

              If you map Profit Center Accounting in new General Ledger Accounting, the system also updates the profit center information in the tables of General Ledger Accounting (new).  This means that when a FI-ALE scenario is used, the system automatically also distributes the profit center information.  Therefore, there are no more separate profit center-ALE scenarios in this case, for example, there is no decentralized Profit Center Accounting.

              If you use new General Ledger Accounting, but continue to map Profit Center Accounting using only classic Profit Center Accounting (that is, you have not assigned the profit center scenario or segment scenario to any new G/L ledger), use one of the two profit center-ALE scenarios for the distribution of the profit center data.  We do not recommend an update of the FI IDocs (FIDCC1/FIDCC2) in classic Profit Center Accounting (see Note 114814).

              If you use Profit Center Accounting in new General Ledger Accounting and classic Profit Center Accounting in parallel for a transition time, and you use ALE scenarios, you would have to use the FI scenario and PCA-ALE scenario in parallel in this transition time.  Depending on the scenarios used, it may be difficult to reconcile the data of the two components, and there may be restrictions.

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