Mapping Revenue Accounts to Profit Centers in SAP FICO

In SAP FICO, mapping revenue accounts to profit centers is a key task to ensure that the revenue generated by the business is accurately attributed to the corresponding business segments (profit centers). This is crucial for profitability analysis, as it enables businesses to track the performance of different product lines, regions, or departments. This article explains the step-by-step process of mapping revenue accounts to profit centers in SAP FICO, with examples to guide you through the configuration.

Step 1: Activate Profit Center Accounting

Before mapping revenue accounts to profit centers, you need to ensure that Profit Center Accounting is activated in your SAP system. This step is a prerequisite for utilizing profit centers in financial transactions.

1. Navigate to transaction EC01 to activate Profit Center Accounting.
2. Select the company code and controlling area where you want to activate Profit Center Accounting.
3. Activate the checkbox for Profit Center Accounting and click Save.

Example: You activate Profit Center Accounting for company code "1000" and controlling area "CA01", so that revenue can be assigned to profit centers for reporting purposes.

Step 2: Define Revenue Accounts in the Chart of Accounts

Revenue accounts need to be defined in the chart of accounts before they can be mapped to profit centers. These accounts represent the income earned by the company, such as sales revenue, service income, and other sources of income.

1. Navigate to transaction OBD4 to define revenue accounts in the chart of accounts.
2. In the "Account" field, enter a revenue account number (e.g., "400000" for sales revenue).
3. Enter a description for the account (e.g., "Sales Revenue").
4. Save the revenue account.

Example: You define a revenue account "400000" for "Sales Revenue" under your chart of accounts to record income from product sales.

Step 3: Assign Profit Centers to Revenue Accounts

Once revenue accounts are defined, the next step is to map them to profit centers. This ensures that revenue posted to these accounts will be automatically assigned to the corresponding profit center for profitability analysis.

1. Navigate to transaction KE52 to configure the mapping of revenue accounts to profit centers.
2. In the "Profit Center" field, select the profit center you want to assign (e.g., "P001" for "Product Line A").
3. In the "Account" field, enter the revenue account you wish to assign (e.g., "400000" for "Sales Revenue").
4. Click on Save to store the mapping.

Example: You assign revenue account "400000" for "Sales Revenue" to profit center "P001" to ensure that sales revenue from "Product Line A" is tracked under that specific profit center.

Step 4: Ensure Integration with Financial Transactions

Once the revenue accounts are mapped to profit centers, the system will automatically assign the relevant profit center when posting financial transactions such as sales orders, billing documents, or other income-related entries. This integration ensures that revenue is correctly allocated to the appropriate business segments.

• FI Integration: During posting of a financial document (e.g., invoice), the system will automatically assign the profit center based on the revenue account used in the document.
• SD Integration: When creating a billing document in the Sales and Distribution module, the system will use the mapped revenue account and automatically assign the profit center.

Example: When creating a sales invoice using transaction VF01, the system will post the revenue to account "400000" and automatically assign the profit center "P001" for "Product Line A".

Step 5: Configure Profitability Analysis for Revenue Accounts

To monitor the profitability of each business segment based on revenue, you need to configure profitability analysis in SAP. This involves setting up key figures and characteristics that will help you analyze revenue at the profit center level.

1. Navigate to transaction KEA1 to define the characteristics for profitability analysis.
2. Select the relevant profitability segment (e.g., "Profit Center").
3. Define key figures (e.g., "Revenue") to track the income generated by each profit center.
4. Save the configuration.

Example: You define "Revenue" as a key figure for profitability analysis and assign it to the "Profit Center" characteristic to analyze revenue by different product lines.

Step 6: Monitor Revenue Performance Using Reports

After mapping revenue accounts to profit centers, it is important to monitor revenue performance across different business segments. SAP provides various reports to help you analyze the revenue data at the profit center level.

• KE30 - Profitability Report: This report allows you to analyze revenue by profit center and other characteristics, such as product, customer, or region.
• KE24 - Line Item Profitability Report: This report provides detailed line item data for each revenue transaction, which can be filtered by profit center.

Example: After mapping revenue accounts to profit centers, you run the profitability report (KE30) to analyze the revenue generated by "Product Line A" under profit center "P001" for the current quarter.

Step 7: Review and Adjust the Mapping (if necessary)

After mapping the revenue accounts to profit centers and monitoring the reports, it may be necessary to adjust the mappings based on changes in the business structure or reporting requirements. SAP allows you to modify the mappings to accommodate changes in business operations.

1. Navigate to transaction KE52 to modify the existing mapping.
2. Select the profit center and revenue account that you wish to change.
3. Make the necessary adjustments (e.g., assign a different revenue account to a profit center).
4. Save the changes.

Example: You decide to reassign the "Sales Revenue" account "400000" from profit center "P001" to a new profit center "P002" due to changes in your product line structure. You update the mapping accordingly.

Conclusion

Mapping revenue accounts to profit centers in SAP FICO is an essential configuration step to track and analyze revenue across different business segments. By following the steps outlined in this article, you can ensure that revenue is accurately attributed to profit centers, enabling you to perform detailed profitability analysis. This setup also helps streamline financial reporting and decision-making, ensuring that each segment’s performance is clearly understood.