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    Kelly Cooper
    SCM – Costing: Profit center and Intercompany
    Topic posted August 22, 2018 by Kelly CooperGold Trophy: 10,000+ Points, tagged Manufacturing MDM, Manufacturing Analytics 
    168 Views, 2 Comments
    SCM – Costing: Profit center and Intercompany

    Submit your questions for the SCM – Costing: Profit center and Intercompany session to have them answered during the live event. Post your questions by posting a new comment to this topic.

    Please submit your questions by Monday, 27 August 2018.



    • Deepak Padhy

      Hi -  Apologies for posting this Question after deadline, hope it will get reviewed.

      within a Legal Entity, i have three BUs A, B, C. 'A' is a profit centre BU and B, C is not.
      'A' having inv org as A1, A2, A3, B having inv org as B1, B2, B3, and simmilary C1, C2, C3.
      Can i roll up B1, B2,B3 and C1, C2, C3 inv org to profit center BU 'A' ?

      why i am asking this is because of i need an item must have same cost in all the organizations. And to have same cost for an item i must maintain my Valuation unit at cost org level. And those inv orgs mapped to a single PCBU can be mapped to a single Cost org. So if i can map B1, B2, B3, C1, C2, C3 with PCBU  'A', then i can create a cost org (CO1) and map all A1, A2, A3, B1,B2,B3,C1,C2,C3 inv orgs to cost org CO1. Is my assumption is correct ? If not can you please answer below:

      so my Question is can different inv organization belongs to different BUs can have same cost for an Item?




      • Kaushik Sivakumar

        A cost organization can represent a single inventory organization, or a group of inventory organizations that roll up to a profit center business unit. You can group several inventory organizations under a cost organization for financial reporting purposes as long as they all map to a single profit center business unit. Because the inventory organizations that are assigned to a cost organization must all belong to the same business unit, it follows that they also belong to the business unit's legal entity.