A loss center is a subunit of a company that is solely responsible for its costs. Examples of loss centers include manufacturing plants and service units within the plant, as well as administrative departments such as IT and accounting.
A profit center is a subdivision of a company that is responsible for revenues and costs. Usually, a division of a company is a profit center because it controls its revenues, costs, and profits.
Profit centers and loss centers are often associated with planning and control in a decentralized company.
Creating a Profit - Loss Center
You can start creating " Profit - Loss Centers" by clicking the " New" button.
Top Center
If you want a "Profit and Loss Center" to be hierarchically dependent on a "Profit and Loss Center" that has already been created in the System, you can select this center from the "Parent Center" drop-down box.
Center Type
You need to choose one of the following types from the Combobox.
ZUP - Hierarchical Unit
CPC - Profit - Loss Center
CST - Loss Center
PRF - Profit Center
INV - Investment Center
Viewing Central Balance
You can view the balance in a P&L Center under the "Center Balance" tab.
Under the "Management Accounting Balance" tab of the "Central Balance" tab, the "Debit - Credit - Balance" information is listed by Month for both Bookkeeping and Reporting Currencies.
Creating a Profit-Loss Center with External Data Transfer
After pressing the "Filter - Menu" button, you need to press the "Data Transfer" link under the "Work Menu" tab.
The " Profit - Loss Centers Data Transfer " screen will open and you must select a Data Import Template after pressing the " New" button.
You can download the template by clicking the "Excel" icon.
This Excel Sheet shows how to edit the "Cost Profit Centers List" to be imported.
After setting up the Profit - Loss centers list, you need to save the document as type : CSV (Comma Separated) (*.csv)
Next, you must upload the .csv formatted document to Documents .
On the " Profit - Loss Centers Data Import Operations" screen, you can select " Import Document" from the " Documents" window and send it. After saving the screen, you need to click the " Import Data from Document" button. Then, you can check the imported records under the " Import Table Records" tab.