Profit Center Enduser Training Manual

Saudi Arabian Airlines
PROFIT CENTRE
ACCOUNTING
CO_02
USER TRAINING MANUAL
2008
Version: 01
CO_02 Profit Centre Accounting Version - 01 1

Profit Centre Accounting
Contents
PROFIT CENTRE ACCOUNTING.......................................................................................2
1. COURSE INTRODUCTION ......................................................................................3
2. CURRICULUM ..........................................................................................................4
2.1 Pre Requisite Training ....................................................................................4
2.2 Controlling Course Curriculum ........................................................................4
3. CONTROLLING PROCESS OVERVIEW .................................................................5
4. BUSINESS IMPACTS ...............................................................................................6
4.1 Key Impacts ........................................................................................................6
4.2 Glossary..............................................................................................................6
4.3 Post Go Live Support Process ............................................................................6
5. PRACTICAL COMPONENT......................................................................................7
5.1 UNIT 1: PROFIT CENTER – MASTER DATA ..........................................................8
Exercise 1: Process for Creation of Profit Center – KE51 .........................................9
Exercise 2: Process for Change of a Profit Center – KE52 .....................................18
Exercise 3: Process for Display a Profit Center – KE53..........................................21
Unit Summary: Profit Center – Master Data............................................................23
5.2 UNIT 2: PROFIT CENTER GROUP – MASTER DATA ..........................................24
EXERCISE 1: PROCESS FOR CREATION OF A PROFIT CENTER GROUP – KCH1 ...25
Exercise 2: Process for Change a Profit Center Group – KCH2 .............................30
Exercise 3: Process for Display a Profit Center Group – KCH3 ..............................34
Unit Summary: Profit Center Group – Master Data .................................................36

1. Course Introduction
Controlling (CO) offers information to decision makers for planning, measuring and
monitoring enterprise's operations and performance. It represents the internal accounting
view of an organization.
All data relevant to cost and revenue flows are created from various sources such as
Financial Accounting (FI), Materials Management (MM) and Sales and Distribution (SD).
The cost and revenue flows will update FI and simultaneously create equivalent postings
into CO.
As part of this process, the system assigns the costs and revenues to different CO account
assignment objects like cost centers, orders, or profitability segments. The relevant
accounts in FI are managed in CO as cost elements or revenue elements.

2. Curriculum
2.1 Pre Requisite Training
Course Content
SAP 01 Sap Basics and Sap Navigation Training
Accounting and Finance Managerial and Financial Accounting
2.2 Controlling Course Curriculum
CO_01 Overhead Cost Controlling
CO_02 Profit Canter Accounting

3. Controlling Process Overview

4. Business Impacts
4.1 Key Impacts
Business Process Impact
Profit Center Accounting Improved to provide visibility of an organization’s profit and

losses by profit center.
4.2 Glossary
Terminology Meaning
Software being used for business

SAP processes : System Application
Products
4.3 Post Go Live Support Process
Contact Telephone: 4000
Email: ithelpdesk@saudiairlines.com.sa
LAN : http://ahd.sv.net

5. Practical Component
The following section will focus on exercises that will learn how to apply the SAP Profit
Center Process to your Job.
There are a series of exercises relating to Business Scenarios, with detailed instructions
and notes.
If at anytime you have any questions, please feel free to stop the Trainer and ask them
questions.

5.1 Unit 1: Profit Center – Master Data
Contents:
• Exercise 1: Process for Creation of a Profit Center

• Exercise 2: Process for Change of a Profit Center
• Exercise 3: Process for Display of a Profit Center

Exercise 1: Process for Creation of Profit Center – KE51
The Enterprise contains Profit Centers at the lowest organizational unit that requires a full
Income Statement. All actual and plan revenues are managed at the Profit Center level.
Actual and plan costs are managed at the Cost Center level, and, through the assignment
of one or many Cost Centers to a Profit Center, an income statement can be produced.
Use Profit Center assessments or distributions to allocate actual and plan revenues
between Profit Centers. Costs may be allocated between Profit Centers; however, this
may be considered a “top side” adjustment because an allocation between Profit Centers
will not be reflected in the assigned Cost Centers.
Plan revenues in Profit Centres. Again, plan costs can be reported here if a Cost Center is
assigned. Unlike Cost Centers, a Profit Center is active for all Company Codes assigned
to a Controlling Area.
Input – Required Fields Field Value/Comments

Profit center Key identifying the Profit Center. Unique within a
Controlling Area
Valid to and from
Name Text
Person in charge Text
Profit center group Hierarchy Area
Output - Results Comments

Status bar message: “Profit Center XX has been created”.
Tips and Tricks
Use the “Copy from” functionality described below to reduce repetitive field maintenance.

1. To create a Profit Center, enter transaction code KE51 in the command box, or follow
the menu path given below from the initial SAP Easy Access screen, double clicking
on the last item:
AccountingÆ ControllingÆ Profit Center AccountingÆ Master DataÆ Profit

CenterÆ Individual ProcessingÆ Create
2. On screen “Create Profit Center”, enter information in the fields as specified in the table
below:
Press “Enter” or Click on

“Master Data”
Field Description R/O/ User Action and Values Comments

Name C
Profit Key that uniquely R Establish a
center identifies this Profit Profit Center
Center in the naming
Controlling Area convention.
Copy from
Source Profit Center C Enter the name of the
Profit master record to be profit center master
center copied. record that will serve as
a model for the new profit
center master record.
Controlling Uniquely identifies a C

Area controlling area.
(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)
3. Click on the ENTER or Press “Master Data” Icon.

4. On screen “Create Profit Center: Basic Data Tab”, enter information in the fields as
specified in the table below:

5. On screen “Create Profit Center: Company Code Tab”, select the companies in the
fields as specified in the table below:
Select “Company Code” Tab

6. On screen “Create Profit Center: Address Tab”, enter information in the fields as
Select “Address” Tab

7. On screen “Create Profit Center: Communication Tab”, enter information in the fields
as specified in the table below:
Select “Communication” Tab

8. On screen “Create Profit Center: History Tab”, view the information in the fields as
Select “History” Tab
Field Name Description R/O/ User Action and Values Comments

C
Basic Data
Tab
Profit Center R Defaulted by the system
from the initial screen.
Status R Defaulted by the system.

Examination Dates indicating as R
Period … To of when an entry is
valid.
Name Text description of R This field is

the new profit displayed in the
center. Profit Center
Standard
Hierarchy.
Description Long text O
description of the
new profit center.

Basic Data
Tab
Person in Profit Center R Text
charge Manager
Department Department O Text .
Profit center Hierarchy Area R Enter an end node from
group the Profit Center
Standard Hierarchy.
Indicators
Tab
Dummy This flag determines O To activate the field,
Profit Center whether the profit double click on it. The
center is defined as pop window will prompt
the dummy profit you to
center for the activate/deactivate the
controlling area. flag.
Lock Indicator O Activate / Deactivate this

indicator indicator using one
mouse click to block /
unblock the Profit center
from future postings.
Company
Codes Tab
Assigned Check the company R Check box
codes for which the
profit center can
receive postings

Click on “Save” Button
9. To save profit center in inactive status, click on SAVE button. The message "Profit
Center XXXX saved in inactive status" will appear.
10. To save profit center in active status, click the Activate button or Shift + F1. The
message "Profit Center XXXX has been created" will appear on the lowest pane of the
screen.

Exercise 2: Process for Change of a Profit Center – KE52

Controlling Area
Valid from
(Valid) to
Name Text
Person in charge Text
Profit center group Hierarchy Area

Status bar message:
1. To change a Profit Center, enter transaction code KE52 in the command box, or follow
the menu path given below from the initial SAP Easy Access screen, double clicking on
the last item:

CenterÆ Individual ProcessingÆChange
2. On screen “Change Profit Center”, enter information in the fields as specified in the
table below:

Name C
Center in the Controlling naming
Area convention.

3. Click on ENTER or MASTER DATA button.
4. On screen “Change Profit Center”, change information in the fields as specified in the
table below:
Field Description R/O/ User Action and Comments

Name C Values
Basic
Data Tab
Profit R Defaulted by the system
Center from the initial screen.
Status R Defaulted by the

system.
Examination Dates indicating as of R
Period … when an entry is valid.
To

Name Text description of the R This field is
new profit center. displayed in the
Profit Center
Standard
Hierarchy.
Long text description O
Description of the new profit
center.
Basic Data
Person in Profit Center Manager R Text
charge
Department O Text .
Departmen
t
Profit Hierarchy Area R Enter an end node from
center the Profit Center
group Standard Hierarchy.
Indicators
Tab
Dummy This flag determines O To activate the field,
Profit whether the profit double click on it. The
Center center is defined as pop window will prompt
the dummy profit you to
center for the activate/deactivate the
controlling area. flag.
Lock Indicator O Activate / Deactivate

indicator this indicator using one
mouse click to block /
unblock the Profit center
from future postings.
Company
Codes
Tab
Assigned Check the company R Check box
codes for which the
profit center can
receive postings
5. To save changes in a profit center in inactive status click on SAVE button. The
message "Profit Center XXXX saved in inactive status" will appear.
6. To save changes in a profit center in active status, click the Activate button or Shift +
F1. The message "Profit Center XXXX has been created" will appear on the lowest
pane of the screen.

Exercise 3: Process for Display a Profit Center – KE53

Controlling Area

Display of profit center master data.
1. To display a Profit Center, enter transaction code KE53 in the command box, or follow
the menu path given below from the initial SAP Easy Access screen, double clicking on
the last item:

CenterÆ Individual ProcessingÆDisplay
2. On screen “Display Profit Center”, enter information in the fields as specified in the
table below:

Name C
Center in the Controlling naming
Area convention.

3. On screen “Display Profit Center”, view the information in the fields as specified in the
table below:
Press “Green Arrow”

to Exit
4. Click the green back arrow (F3) or the yellow up arrow (Shift-F3) to exit the display
screen after you have completed your review of the profit center master data.

Unit Summary: Profit Center – Master Data
After completing this unit, you should be able to
• Create, Change and Display a Profit Center

5.2 Unit 2: Profit Center Group – Master Data
Contents:
• Exercise 1: Process for Creation of a Profit Center Group

• Exercise 2: Process for Change of a Profit Center Group
• Exercise 3: Process for Display of a Profit Center Group

Exercise 1: Process for Creation of a Profit Center Group – KCH1
The standard hierarchy is a profit center group, or tree structure, which contains all the
profit centers in one controlling area. The standard hierarchy usually corresponds to the
organizational structure used in Profit Center Accounting.
The standard hierarchy consists of two types of nodes:
• A profit center area is an end node in the structure, which is not the top node. You
can only assign your profit centers to the end nodes of the structure.
• A summarization area groups together profit center data at a higher level. Each
node of the standard hierarchy, which is not an end node, is a summarization area.
You cannot assign profit centers directly to a summarization area. It merely groups
together the profit center areas and summarization areas which lie below it.
In addition to the standard hierarchy for your controlling area, you can also create
alternative profit center hierarchies -- so-called "profit center groups" -- for use in the
information system, allocations and planning.
In contrast to the standard hierarchy, these profit center groups do not have to contain all
the profit centers in the controlling area. On the contrary, profit center groups let you select
only certain profit centers and reorganize them to allow you more flexibility.

Profit center group Key identifying a profit center group. Unique in a controlling
area.

Structure saved.

1. To create a Profit Center Group, enter transaction code KCH1 in the command box, or
follow the menu path given below from the initial SAP Easy Access screen, double
clicking on the last item:

Center GroupÆCreate
AccountingÆ ControllingÆ Profit Center AccountingÆ Master DataÆ

Standard HierarchyÆCreate
2. On screen “Create Profit Center Group”, Initial Screen”, enter information in the fields
as specified in the table below:
Hit on “Hierarchy”
Icon or Press Enter to
proceed
Field Name Description R/O/ User Action and Comments

C Values
Profit center The name of a node R Enter the name of the The group name
group in hierarchically node that you wish to must be unique
structured groups. change
The group name may
be a maximum of 10
characters in length.
Reference
Profit center The name of a node O
group in hierarchically
structured groups
that you want to use
as a model for
creating a new one.
Controlling O
area

3. Press ENTER or Press “Hierarchy” Icon to proceed.
4. On screen “Create Profit center group: Structure”, add a new node to a top node or sub
node by entering information in the fields as specified in the table below:

Name C
Set ID The group name. R Enter a unique name here
or select an existing group
from the list of possible
entries.
Short Text. O
text
4.1. Mark the top node or sub node (source node) that will be directly
Superior to the new node.
4.2. Click on the Lower level button to add a sub node that will be inferior to
the source node.
4.3. Enter the name of the new node in the Set ID field or select a
group from the possible entries list.
4.4. Enter a short text description of the new node in the Short text
field.
4.5. Save the changes by clicking on the Save button. The message
“Changes were saved” should appear in the Status Bar.

5. On screen “Create Profit center group: Structure”, add profit centers to an end node by
entering information in the fields as specified in the table below:

Name C
From A profit center R Enter a profit center value or
Value the start interval of a range
of profit centers.
To value A profit center O Enter the end interval of a
range of profit centers
5.1. Mark the end node that the profit centers will be assigned to using one
mouse click. Profit centers cannot be assigned to nodes that are not end
nodes.
5.2. Click on the insert values button.
5.3. If a single profit center, enter the name (value) within the value field or
select the profit center from the list of possible entries. If a range of profit
centers, enter the start interval here.
5.4. Conditional – enter the end interval of a range of profit centers here.

6. On screen “Create Profit center group: Structure”, revoke the relationship of a sub node
to its superior node:
6.1. Mark the target sub node using one mouse click.
6.2. Select the target node by clicking on the Select button.
6.3. Revoke its relationship by clicking on the Revoke relationship (Remove)
button or press F5.
6.4. Save the changes by clicking on the Save button. The message”
Changes were saved” should appear in the Status Bar.
7. On screen “Create Profit center group: Structure”, revoke the relationship of a profit
center value or interval to its end node:
7.1. Mark the target value or interval using one mouse click.
7.2. Select the value or interval by clicking on the Select button.
7.3. Revoke its relationship by clicking on the Revoke relationship (Remove)
button or press F5.

Exercise 2: Process for Change a Profit Center Group – KCH2

Profit center group Key identifying a profit center group. Unique in a
controlling area.

Structure saved.
1. To change a Profit Center Group, enter transaction code KCH2 in the command box, or
Accounting>Enterprise controlling>Profit center accounting>Master data>Profit

center group>Change
2. On screen “Change Profit center group: Initial Screen”, enter information in the fields as
Field Description R/O/C User Action and Values Comments

Name
Profit A hierarchy node R Enter the name of the node
center that you wish to change
group
3. Press ENTER or Press “Hierarchy” Icon to proceed

4. On screen “Change Profit center group: Structure”, add a new node to a top node or
sub node by entering information in the fields as specified in the table below:

Name C
Set ID The group name. R Enter a unique name here or
select an existing group
from the list of possible
entries.
Short Text. O
text
4.1. Mark the top node or sub node (source node) that will be directly superior to
the new node.
4.2. Click on the Lower level button to add a sub node that will be inferior to the
source node.
4.3. Enter the name of the new node in the Set ID field or select a group from
the possible entries list.
4.4. Enter a short text description of the new node in the Short text field.
4.5. Save the changes by clicking on the Save button. The message “Changes
were saved” should appear in the Status Bar.

5. On screen “Change Profit center group: Structure”, add profit centers to an end node
by entering information in the fields as specified in the table below:
Field Description R/O/ User Action and Comments

Name C Values
From A profit center R Enter a profit center
Value value or the start
interval of a range of
profit centers.
To value A profit center O Enter the end interval of
a range of profit centers
5.1. Mark the end node that the profit centers will be assigned to using one
mouse click. Profit centers cannot be assigned to nodes that are not end
nodes.
5.2. Click on the Profit Center button.
5.3. If a single profit center, enter its name (value) within the value field or
select the profit center from the list of possible entries. If a range of profit
centers, enter the start interval here.
5.4. Conditional–enter the end interval of a range of profit centers here.
5.5. Save the changes by clicking on the Save button. The message “Changes
were saved” should appear in the Status Bar.

6. On screen “Change Profit center group: Structure”, revoke the relationship of a sub
node to its superior node:
6.1. Mark the target sub node using one mouse click.
6.2. Select the target node by clicking on the Select button.
6.3. Revoke its relationship by clicking on the Revoke relationship button.
6.4. Save the changes by clicking on the Save button. The message”
Changes were saved” should appear in the Status Bar.
7. On screen “Change Profit center group: Structure”, revoke the relationship of a profit
center value or interval to its end node:
7.1. Mark the target value or interval using one mouse click.
7.2. Select the value or interval by clicking on the Select button.
7.3. Revoke its relationship by clicking on the Revoke relationship button.

Exercise 3: Process for Display a Profit Center Group – KCH3

Profit center group Key identifying a profit center group. Unique in a controlling
area.

Structure displayed.
1. To display a Profit Center Group, enter transaction code KCH3 in the command box, or
Accounting>Enterprise controlling>Profit center accounting>Master data>Profit

center group>Display
2. On screen “Display Profit center group: Initial Screen”, enter information in the fields as

Name C
Profit A hierarchy node R Enter the name of the node
center that you wish to change
group
3. Process End

Unit Summary: Profit Center Group – Master Data
After completing this unit, you should be able to
• Create, Change and Display a Profit Center Group

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Saudi Arabian Airlines

USER TRAINING MANUAL

CO_02 Profit Centre Accounting Version - 01 1

1. COURSE INTRODUCTION ......................................................................................3

2.1 Pre Requisite Training ....................................................................................4

2.2 Controlling Course Curriculum ........................................................................4

3. CONTROLLING PROCESS OVERVIEW .................................................................5

4. BUSINESS IMPACTS ...............................................................................................6

4.1 Key Impacts ........................................................................................................6

4.3 Post Go Live Support Process ............................................................................6

5.1 UNIT 1: PROFIT CENTER – MASTER DATA ..........................................................8

Exercise 1: Process for Creation of Profit Center – KE51 .........................................9

Exercise 2: Process for Change of a Profit Center – KE52 .....................................18

Exercise 3: Process for Display a Profit Center – KE53..........................................21

Unit Summary: Profit Center – Master Data............................................................23

5.2 UNIT 2: PROFIT CENTER GROUP – MASTER DATA ..........................................24

EXERCISE 1: PROCESS FOR CREATION OF A PROFIT CENTER GROUP – KCH1 ...25

Exercise 2: Process for Change a Profit Center Group – KCH2 .............................30

Exercise 3: Process for Display a Profit Center Group – KCH3 ..............................34

Unit Summary: Profit Center Group – Master Data .................................................36

CO_02 Profit Centre Accounting Version - 01 2

CO_02 Profit Centre Accounting Version - 01 3

2.1 Pre Requisite Training

SAP 01 Sap Basics and Sap Navigation Training

Accounting and Finance Managerial and Financial Accounting

2.2 Controlling Course Curriculum

CO_01 Overhead Cost Controlling

CO_02 Profit Canter Accounting

CO_02 Profit Centre Accounting Version - 01 4

CO_02 Profit Centre Accounting Version - 01 5

4.1 Key Impacts

Business Process Impact

Profit Center Accounting Improved to provide visibility of an organization’s profit and

Software being used for business

4.3 Post Go Live Support Process

Contact Telephone: 4000

CO_02 Profit Centre Accounting Version - 01 6

CO_02 Profit Centre Accounting Version - 01 7

• Exercise 1: Process for Creation of a Profit Center

CO_02 Profit Centre Accounting Version - 01 8

Input – Required Fields Field Value/Comments

Output - Results Comments

Tips and Tricks

CO_02 Profit Centre Accounting Version - 01 9

AccountingÆ ControllingÆ Profit Center AccountingÆ Master DataÆ Profit

Press “Enter” or Click on

Field Description R/O/ User Action and Values Comments

Controlling Uniquely identifies a C

3. Click on the ENTER or Press “Master Data” Icon.

CO_02 Profit Centre Accounting Version - 01 10

CO_02 Profit Centre Accounting Version - 01 11

Select “Company Code” Tab

CO_02 Profit Centre Accounting Version - 01 12

Select “Address” Tab

CO_02 Profit Centre Accounting Version - 01 13

Select “Communication” Tab

CO_02 Profit Centre Accounting Version - 01 14

Select “History” Tab

Field Name Description R/O/ User Action and Values Comments

Status R Defaulted by the system.

Name Text description of R This field is

CO_02 Profit Centre Accounting Version - 01 15

Lock Indicator O Activate / Deactivate this

CO_02 Profit Centre Accounting Version - 01 16