A Profit Center Hierarchy is the structured, organizational framework used in SAP to group and manage all profit centers within a controlling area. It represents the top-down arrangement of profit centers, starting from the highest-level node (the standard hierarchy) down to individual profit centers and subgroups.
Key Concepts to be discussed in this blog:
How to Create Profit Center Group (PCG)
How to Create Profit Center (PC)
How to Activate Profit Center
How to De-Activate Profit Center
How to Move up/down Profit Center within Group
1. How to Create Profit Center Group (PCG)
Go to T code: KCH6N.
Popup will be appeared, give Controlling Area and click on continue button.
Always screen will be opened with Display.let us make it ‘change’ mode to make changes in Profit Center hierarchy (PCH).
Now create a Profit Center Group
Click the Create icon with the cursor placed on the PCH (since we are creating the first PCG). If you want to create a PCG at the same level as an existing one, place the cursor on that profit center group instead.
Now click on ‘Lower-Level Group‘ as we are creating the PCG under PCH.
Give name and description like below and press enter button.
Now you can see how the PCG appears in the hierarchy view.
Click on save button.
Now let us create the Profit Center (PC) within a PCG.
2. How to Create Profit Center (PC)
Click on PD01 (PCG) and click on create icon.
Now click on Profit Center (PC).
Have a look at how it appears when you click on the Profit Center Creation.
Basic Data Tab: Give details like below – PC name, from/to periods, Short/Long text, Person responsible, Department, Segment.
Company codes Tab: We need to select the company codes for which this Profit Center should be activated.
Address Tab: Add the PC where and about, like below.
Communication Tab: Enter the details like below to communicate the PC.
Click on save button.
Profit Center will be saved as ‘In-Active: Create‘ status.
Note: Types of Profit Center Statuses
3. How to Activate Profit Center (PC)
Click on Activate icon.
A popup will appear prompting you to select the Profit Center you want to activate. Right now we have 3 PC’s with in-active status.
Now you can see that all of them are in active status, just click on save button.
4. How to De-activate Profit Center (PC)
For any reason we can deactivate the PC.
If we change any field in the Profit Center, it will be saved with an ‘In-active Change’ status.
Double-click the Profit Center you want to deactivate, then change any field. In this example, we are changing the ‘Person Responsible.’
You can see the status changed to Inactive: Change after changing the name.
Click on save button.
5. How to Rearrange Profit Center – Up/Down
Reason: In the Profit Center Hierarchy tree, the sequence of the 1st and 2nd Profit Centers are incorrect. Let’s rearrange these two.
Put cursor on the Profit Center and click on the ‘Move up‘ Icon.
