Profit Center Dimension

image_pdfimage_print

Return to Profit Center Model Overview

The Profit Center dimension breaks the figures down by organizational hierarchy into single profit centers. The hierarchy between the root element All Profit Centers and the individual profit centers can be organized in an arbitrary way to match organizational requirements. One level in this hierarchy is usually made of legal entities; other levels may include the division, line-of-business, region, department, subsidiary, and office.

This dimension features a second, parallel hierarchy called All Functional Areas. This hierarchy should share the base elements for the profit centers with the All Profit Centers hierarchy to ensure both root elements add up to the same total. The hierarchy between the root element All Functional Areas and the individual profit centers can be organized in an arbitrary way to match organizational requirements. This hierarchy usually does not include a level for the legal entities.

The Profit Center dimension is intended to manage an organization’s operational units that produce revenue as well as incur costs and are accountable for making a profit. The Cost Center dimension used in the Cost Center model, in contrast, is intended to manage any type of organizational units with a budget attributed to them. Usually, these have very little or no revenue. The Profit Center dimension can be set up identically to the Cost Center dimension or entirely differently – whatever makes the most sense to manage the organization.

Mandatory elements in this dimensions are as follows:

Element

Definition

All Profit Centers

Root element summarizing all base elements, showing 100% of the organization.

All Functional Areas

Parallel hierarchy with functional area breakdown focus rather than organizational breakdown. Must also summarize all base elements showing 100 % of the organization.

~

The NA (not applicable) element of the dimension to hold data that are not broken down by profit center. Must be a child of All Profit Centers and All Functional Areas. This is also the default write element of this dimension.

Unassigned

Grouping of unexpected elements found during the data load. Must be a child of All Profit Centers and All Functional Areas. This is the default parent element of this dimension.

The dimension must have additional base elements to hold data that is not broken down by profit center.

The profit center elements can be configured through their attributes:

 Attribute   Definition
 Name  Readable name of the profit center. Localized translations can be provided. This attribute is visible in the report. There is no hard-coded behavior implemented in this name. (string)
 ID_Name  Combination of the element name a dash (“ – “) and the localized name attribute. (calculated, string)
Description Long text description of the element (string).
Functional Area  Should contain a consolidated element of the functional area hierarchy on each base element, which helps in analysis and reconciliation. On a consolidated level with mixed functional areas, this attribute should be empty. With consolidated elements having a one-to-one relation to functional areas, it may be populated.
 Cost Center  Element of the Cost Center dimension that is mapped to the proft center.

 

image_pdfimage_print