Goods Movements between Profit Centers

Use
In the SAP system, profit centers are regarded as companies within the company. In Profit Center Accounting,
therefore, a flows of materials within a company is considered a sale by the sending profit center and a goods receipt
for the receiving profit center. You cannot reflect these two processes cannot using the original postings.
Consequently, you need to create additional account assignments.
This means that you have to create accounts with the following meaning:
internal revenues
internal changes in stock
Delivery from profit center

Caution
The additional accounts are P&L accounts that can be posted to automatically and cannot be cost elements.
They are posted to regardless of whether or not you use multiple valuation approaches/transfer prices in your
system .
If you do use parallel multiple approaches/transfer prices in your system, however, internal material flows will only
be posted in the profit center valuation view .

Integration
The addtional postings in the profit center valuation view are only visible in Financial Accounting if the following
conditions are met:
1. You are using multiple valuation approaches/transfer prices.
2. You are using the profit center valuation view in Financial Accounting.

Features
When a flow of goods occurs between profit centers, the system generates and updates additional posting lines in
Profit Center Accounting in the above-mentioned additional accounts.
You can make the price dependent on any of the following factors:
Material type
Valuation class
Valuation grouping code
To see examples of postings for various types of internal goods movements, see:
Material Consumption for a Production Order
Consumption Posting Without Receiver Records
Goods Issue for Delivery Note
Stock transfers

Activities
In Financial Accounting Customizing, create the accounts mentioned above.
In Profit Center Accounting Customizing, decide which material types you want to depict the material flow between
profit centers for.
It might make sense to leave out material types such as inexpensive raw materials or operating supplies. For these
material types, only the consumption postings on the receiver side are debited to the profit center.
In an additional step, you can also use your movement type to exclude certain material movements from the account
assignment logic.

Example: Stock Transfers

A straight transfer between inventory locations also needs to be represented from a profit center point of view.

Material M1 is transferred from plant 0001 to plant 0002. The profit centers involved are P100 and P200. The external
price in both plants is 1,000.00.
Different values are posted depending on whether you use transfer prices according to the legal, group, or profit
center viewpoint. The first example shows the postings when both FI and EC-PCA use the legal viewpoint. The
second example shows the postings where the legal viewpoint is used in FI, but the profit center viewpoint is used in
EC-PCA.
Posting Using the Legal View in EC-PCA and FI
FI document:
Stock 1,000.00 (PrCtr P100) to

Stock 1,000.00
Profit center posting:
Profit center P100:

1. Internal revenues -1,000.00

2. Internal change in stock 1,000.00

Profit center P200:

1. Internal change in stock -1,000.00

2. Delivery from profit center 1,000.00

The sender profit center P100 shows a sales transaction. On the receiver side, you can see that the material was
delivered from another profit center, while the values on the receiver side (P200) did not affect profits.
Posting Using the Profit Center View (Transfer Prices) in EC-PCA and the Legal View in FI
In legal valuation, the stock is valuated at 1,000.00.
In profit center valuation, the stock is valuated at 1,200.00.
The transfer price is 1,500.00.
FI posting:
In FI, only the legal valuation view is stored.
Stock 1,000.00 (PrCtr P100) to

Stock 1,000.00
Profit-relevant postings from the profit center viewpoint:
Profit center P100:
1. Internal revenues -1,500.00

2. Internal change in stock 1,200.00

Profit center P200:
1. Internal change in stock -1,500.00

2. Delivery from profit center 1,500.00

This gives profit center P100 an internal profit of 300.00.