The following sap co tutorials guides you how to create profit center group in SAP and what is profit center standard hierarchy in SAP.

Profit center standard hierarchy in SAP controlling enables the grouping all the profit centers like a tree structure. The definition of standard hierarchy for profit center is mandatory as you need to assign the profit center to a particular standard hierarchy. Maintaining all the profit centers of controlling area in one hierarchy that enables in reconciliation process.

How to Create Profit Center Group in SAP

You can create standard hierarchy for profit center in SAP controlling area by using transaction code TKA01 or using SAP IMG path.

SAP transaction code: – KCH1

IMG Menu Path: – Spro >> Controlling >> Profit Center Accounting >> Master data >> Profit Center >> Define Standard hierarchy.

menu path profit center standard hierarchy SAP

Step 1: – Enter sap transaction code “KCH1” in the SAP command field and click on execute.

standard hierarchy profit center tcode

Step 2: – Now enter SAP controlling area for configuration of standard hierarchy.

set controlling area for standard hierarchy

Step 3: – On create profit center group initial screen, enter profit center group key of standard hierarchy for controlling area.

create profit center group SAP

Press enter to continue.

Step 3: – On create profit center group structure screen, update the following details.

  1. Enter name of profit center group.
  2. Click on lower level option for creation of profit center standard hierarchy.
  3. Now assign profit center in the nodes as per hierarchy level.

After updating the details, click on save button and save the configured details.

Successfully we defined profit center standard hierarchy levels in controlling area.