2871278 - Profit Center Is Missing In Journal Entry Of Supplier Invoice of Intercompany Scenario

Profit center is missing in the journal entry of business transaction for intercompany.

You create a Supplier Invoice against an external party and have made the buying company as parent company ABC (ABC stands for the buying company).But, you charge it to the subsidiary company DEF (DEF stands for the subsidiary company). By doing this the parent company will receive the Account Payable and the subsidiary will receive the expense and the intercompany accounts will go on either side. The issue is that the credit side of the journal entry for company DEF will not get any profit center attached to it.

Meanwhile, you have assigned a default profit center against company DEF in the configuration and set the reporting principle as one of below:

• Profit center and segment.
• Profit center and segment, balancing.
• Profit center and segment, clearing.
• Funct of exp, profit ctr/seg.
• Funct of exp, profit ctr/seg, balancing.
• Funct of exp, profit ctr/seg, clearing.
• Fund, profit center and segment, clearing.

SAP Business Bydesign

1. Go to the Supplier Invoicing work center.
2. Go to the Invoices and Credit Memos view.
3. Find Supplier Invoice XYZ (XYZ stands for the supplier invoice ID).
4. Select Edit.
5. Select Actions > Simulate Journal Entry
6. On the Page Simulated, select the <simulated> for company DEF.

In the credit side of the journal entry, the profit center is missing under 'Item Details: General' and in the field 'Profit Center ID'.

Profit center derivation for clearing items on receiving company is not supported. The process works as intercompany clearing items are split based on taxitemgrp (tax item group) of purchase order item for leading company, the intercompany clearing items replaces the purchase order items of receiving company. So with this in the Journal Entry for receiving company profit center derivation would be based on the leading company which is not supported even though you have maintained the default profit center for the receiving company.

When you open the page 'Default Profit Center' in the Activity: Profit Center Derivation, for each company, you have maintained which profit center is derived by default for journal entry line items. You specify a default profit center for each subledger. The system applies the particular default profit center whenever it cannot automatically derive a profit center from the data stored in the source document.

However, in the scenario mentioned above, the profit center cannot be derived.

This is the designed system behaviour.There is no profit center derived for journal entry of supplier invoices of intercompany scenario.

[Enter your See Also here...]

Profit Center, Intercompany Journal Entry, Journal Entry, Profit Center Missing. , KBA , AP-ACC , Business ByDesign: Financial Accounting , Product Enhancement