From the course: SAP S/4 HANA Financial Accounting Overview

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P&L Organization structure

P&L Organization structure - SAP ERP Tutorial

From the course: SAP S/4 HANA Financial Accounting Overview

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P&L Organization structure

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- [Instructor] Now with that same organizational structure if you think about how this is impact reporting on the P&L as an example. So when you look at a P & L you can analyze things by company code or you can further breakdown or go across legal entities by profit center and segment or you can have a detailed review of gross margin profitability. Now cost centers and profit centers also have their own hierarchies that are independent of the company code, legal entity structure so this allows you to then have separate hierarchies to report costs or profit separately from legal entity. So if you think about a P&L, a simple P&L here, the legal entity or company code will always represent the full P&L but if you want to specifically analyze OPEX you can break this down by a set of cost centers and these cost centers can have their hierarchy or their own breakdown. If you want to analyze gross margin specifically and stop here at gross margin you can use the profitability analysis cubes…

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