SAP Knowledge Base Article - Public

1537969 - Error "Cost Center XYZ Must Be Below a Profit Center. It Is Also Possible to Flag Both Definitions on The Same Org Unit"


When trying to check or activate your Org Structure, the system throws the below error messages:

Cost Center XYZ (XYZ represents the Org Unit ID) must be below a Profit Center. It is also possible to flag both definitions on the same Org Unit.
Cost Center XYZ must be below a Business Residence. It is also possible to flag both definitions on the same Org Unit.


  • SAP Business ByDesign.

Reproducing the Issue

  1. Go to the Organization Management work center.
  2. Select the Org Structures view.
  3. Click the Edit button.
  4. Select the relevant Org Structure and click either Check Selected Structure or Activate Selected Structure.
  5. The above-mentioned error messages occur.


The reason behind this error is because Org Unit XYZ is defined as a Cost Center, but is not under an Org Unit with Profit Center and Business Residence definitions.


Please either move Org Unit XYZ to be below an Org Unit that is also a Profit Center and a Business Residence, or add these definitions to Org Unit XYZ's parent unit.

If the issue still occurs after that, please report an incident.


Below, Profit Center, Cost Center, Org Unit , KBA , SRD-MD-OM , Organizational Management , How To


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